Bitcoin Long-Term Holder Supply Drops to 8-Month Low as Market Cycle Diverges from Historical Trends

The supply of Bitcoin held by long-term investors has reached its lowest point in eight months, signaling a significant deviation from established historical patterns. This key on-chain metric, which tracks coins that have not moved for at least 155 days, suggests long-term holders are distributing their assets. Typically, such a sustained decline in the long-term holder supply occurs during major market tops. However, analysts note the current cycle is breaking from this precedent, as the drawdown is happening amidst a price consolidation phase rather than a euphoric peak. This unusual behavior indicates a potential shift in market dynamics, where veteran Bitcoin investors are taking profits earlier in the cycle. The movement could introduce increased selling pressure but may also contribute to a healthier redistribution of coins before a potential next leg up, making the current market structure distinct from previous cycles.