Bitcoin Long-Term Holders Concentration Suggests Potential Supply Unlocking on Price Rise

I observe that long-term Bitcoin investors, those who have held their holdings for at least 155 days, still possess 53% of the total supply. Despite recent distribution activity, this persistent concentration indicates that a significant portion of the supply remains locked with these long-term holders. If Bitcoin's price experiences a sustained upward movement, it might trigger more of this locked supply to enter the market, potentially increasing liquidity. This scenario underscores the importance of ongoing demand to absorb potential increased supply. When long-term holders decide to sell, it can lead to substantial price movements, especially if the market lacks sufficient buying interest. Therefore, monitoring demand levels becomes crucial for predicting possible price volatility and the overall bullish or bearish trend. In such a context, maintaining investor confidence and fostering a robust demand environment is essential. A strong demand backdrop can help absorb the unlocked supply and support ongoing bullish momentum. Conversely, if demand falters, increased supply might lead to downward pressure, even amid a historically strong holder base.