The Amount of BTC Held by Long-Term Holders in Bitcoin Has Increased Significantly: How Could It Affect the Price in the Coming Months? Here’s the Answer

Crypto analysis firm Alphractal published its latest assessment of the Bitcoin market, highlighting the renewed increase in accumulation by long term whales and noting that this could have mixed effects on short-term price movements.

According to Alphractal, Long Term Holders (LTH) currently control 14.39 million BTC, accounting for 72.48% of the total circulating supply. In contrast, Short Term Holders (STH) hold 5.46 million BTC, or 27.48%. This increasing dominance of LTH in Bitcoin distribution indicates a clear shift towards an accumulation trend that could shape the market's trajectory in the coming months, according to the analysis company.

Alphractal said, "At first glance, this may not seem very promising for short-term price movement" and added: "Historically, since the supply held by STH is more sensitive to demand and current market sentiment, periods of continuous accumulation by LTH have usually been followed by downward price pressure."

However, the firm stated that the 1-year change in LTH Accumulation and Distribution clearly indicates a return to accumulation. This trend is generally seen as a long term bullish signal in today's volatile macroeconomic environment, where uncertainty regarding interest rates and geopolitical tensions is high.

Alphractal also observed an increase in short positions among individual investors, which could raise the potential for a short squeeze scenario where the mass liquidation of shorts drives prices up.

Nevertheless, analysts warn that an increase in interest in long positions could indicate the formation of a local price peak in the short term.