Bitcoin volatility decreases as long-term holders increase supply

Bitcoin market volatility is decreasing as long-term holders (LTH) increase their holdings, reducing the available circulating supply and selling pressure. According to data from Glassnode, over 71% of the total Bitcoin supply is currently in a profitable position, nearing the historical average of 74.7% observed during transitions from bear to bull markets.

Analysts note that as investors hold assets for longer periods—defined by Glassnode as 155 days or more—the likelihood of immediate selling decreases. This accumulation of long-term holdings, which includes a rise in investors holding Bitcoin for over six months, may serve as a foundation to support prices during market corrections.

While the increase in long-term supply is viewed as a positive signal for accumulation, experts caution that it does not guarantee a price floor. The high percentage of unrealized profits also means that a price rebound could trigger profit-taking, particularly from short-term holders. Future price direction will likely depend on whether new demand can enter the market alongside these shifting supply dynamics, as well as factors like ETF inflows and macroeconomic conditions.