79% of Bitcoin Supply Now Locked by Long-Term Holders. Analyst Sees Bear Market Nearing Exhaustion

A new analysis from K33 reveals that 79% of Bitcoin's circulating supply is now held by long-term investors. This marks a record high, surpassing previous peaks during past bear markets, and indicates that these holders are typically more resilient during downturns and less likely to sell during volatility.

The data shows historically low spending of old coins, indicating that even amid ongoing macroeconomic uncertainty, investors are accumulating rather than selling. This behavior often precedes market bottoms, as seen in previous cycles, and K33 sees the bear market as nearing exhaustion.

For everyday investors, this trend suggests that the worst of the bear market may be over. Long-term holders typically hold through downturns, and their increased control of the supply could signal a shift toward a more stable or bullish market in the coming months.

Additionally, the low spending of old coins reinforces the idea that many investors are waiting for better market conditions before making moves. This patience could be a precursor to a significant market turnaround, making it a crucial indicator for those watching Bitcoin's price movements.

Watch for further signs of accumulation and spending patterns in the coming weeks, as these could provide more clarity on the market's direction. If long-term holders continue to hold, it may signal a stronger foundation for a potential recovery.