Bitcoin Long-Term Holders Buy the Dip as Their Supply Increased by 262,000 BTC

Bitcoin [BTC], the largest cryptocurrency by market cap, has recently experienced a sharp decline in its prices. At press time, the king coin was trading at $58679.

Bitcoin [BTC] price has fallen sharply recently. At press time, the largest cryptocurrency was trading at $58,679. This marked a decrease of 6.69% in the last 24 hours.

Prior to this drop, BTC was on an upward move, reaching $64,404 last week. However, the sharp decline on the daily charts outpaced all weekly gains, with a 1.71% drop recorded on the weekly charts.

This sudden decline raises questions about panic selling and the role of long-term holders in ensuring Bitcoin's stability.

Long-term Bitcoin holder purchases reached $10 billion

According to CryptoQuant analyst Amr Taha, long-term holders are less likely to sell and buy and hold during market declines.

Amr Taha suggested in his analysis that long-term holders spent $10 billion to buy the crypto. Additionally, these buyers refrained from selling because the market is currently in decline.

The analyst shared the following in a post:

"Long-term holders' realized capitalization exceeded $10 billion for the first time in history."

Source: CryptoQuant

Based on this observation, holders who passed the 155-day limit continued to hold their crypto. Additionally, as seen in the last 30 days, institutions increased their purchases.

Major BTC investors such as Marathon, Blackrock, Galaxy Digital, Metaplanet have traded in the last 30 days.

These institutions are large owners and tend to accumulate assets over long periods of time.

Source: IntoTheBlock

This phenomenon means that large owners have long accumulation phases. According to data from IntoTheBlock, large holders wait at least five months to three years to sell their assets, while small holders

Long-term holders' supply increased by 262,000 BTC

Although long-term holders are less likely to sell, their supply has increased exponentially. As Cryptoquant shared, long-term holders control more than 75% of the total BTC supply.

They shared the analysis on the X (formerly Twitter) page and included the following statements:

"Over the last 30 days, the Long-Term Holders supply has increased by 262,000 $BTC. They currently hold 14.82 million Bitcoins, which is 75% of the total supply."

Source: CryptoQuant

The last 30 days have witnessed high BTC volatility falling as low as $49,577. These price fluctuations explained the increasing accumulation of long-term holders.

These holders tend to buy more assets during market declines and then put them back into the market during a prolonged bull market. The strategy allows them to buy cheap and sell later for high returns.

Therefore, for long-term holders, low BTC prices are a buying opportunity to accumulate.

Source: IntoTheBlock

As a result, although Bitcoin is experiencing a decline, this has created a buying opportunity for long-term holders. Increased buying activity creates buying pressure, which pushes prices up.

Read Bitcoin [BTC] 2024–2025 Price Forecast

Therefore, when the market crashed earlier this month, inflow from large holders increased between August 5 and 9, pushing prices back to the $60,662 resistance level.

Thus, it is predicted that such a cycle will repeat to raise prices above $60 thousand.

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