Bitcoin’s price has been pretty stable lately, hovering between $106,000 and $112,000 after hitting a new high of $111,814. Even though miners sold off some Bitcoin after that high, the price stayed above $108,000. Why? Because long-term holders, the “diamond hands,” stepped in and bought the dip.
Long-Term Holders are Accumulating
Data shows that long-term Bitcoin holders (LTHs) are spending less than ever before – the lowest since September 2024! This is a really interesting trend, first spotted on X (formerly Twitter) by analyst Alex Adler Jr. A key metric, the 15-day moving average of LTH spending, is in the “minimal spending” zone – a zone that historically precedes Bitcoin price increases.
Not only are LTHs not selling, but they’ve actually been buying. Over the past 20 days, the amount of Bitcoin held by LTHs has increased by roughly 300,000 BTC. This is a big change from the downward trend seen earlier in 2024. Currently, around 74% of all Bitcoin (14.6 million BTC) is held by LTHs.
Why This is Good News
This shows real market strength. Long-term holders, who are often in substantial profit, are choosing to hold onto their Bitcoin, showing confidence in its future price. This is in stark contrast to short-term holders, who have cashed out over $11.6 billion in profits recently.
This pattern of minimal LTH spending and increased supply mirrors what happened in September 2024. Back then, LTH spending was low, and their holdings were growing. What followed? A massive 96% price surge, taking Bitcoin from around $54,000 to over $106,000.
Potential Future Price Movement
If history repeats itself, a similar 96% rally from the current price of around $109,000 could push Bitcoin to nearly $212,000. That’s a pretty big jump, but it’s based on a similar pattern seen before. Of course, past performance isn’t a guarantee of future results.
