Understanding the $10B Reduction in Bitcoin Spending and its Effects on Market Prices
Unpacking the Bullish Stance of Long-Term BTC Holders Despite Reduced Spending
Key Points
- Bitcoin (BTC) has seen a moderate recovery, with long-term holders experiencing a significant rise in wealth.
- Despite market volatility, these holders remain steadfast, suggesting potential future price gains for BTC.
Despite the recent volatility in the Bitcoin (BTC) market, long-term holders have seen their wealth increase.
Long-Term Holders Stand Firm
This group, consisting of 3-6 million Bitcoin holders, has remained steadfast, leading to a significant increase in their held wealth. This is particularly true for those transitioning into long-term holder status.
Data from Glassnode indicates that the wealth of long-term holders has seen a sharp rise. The LTH MVRV ratio, which measures the value of BTC for long-term holders compared to its cost basis, has maintained a positive momentum since December 2024. This suggests renewed confidence among these holders.
Increased Holding and Decreased Spending
Despite acquiring many of these coins near all-time high levels, the continued aging of these coins indicates conviction rather than capitulation. As profits grow, these long-term holders remain firm in holding their BTC.
Spending activity from this group has dropped to its lowest level since mid-2021, suggesting that recent top buyers are maintaining their positions instead of selling, even amid ongoing market volatility. This has resulted in a sustained decline in Bitcoin’s LTH spent supply since February 2025.
This trend indicates an increasing accumulation trend among long-term holders. With increased holding, it suggests that investors are optimistic about the long-term potential of BTC and anticipate more gains.
Impact on BTC
The reduced spending rate among long-term holders enables BTC to absorb selling pressure from short-term and speculative investors. This balance between selling and accumulation suggests that Bitcoin will likely trade within a consolidation range.
The bullish sentiment among long-term holders positions Bitcoin for potential price gains. If their conviction persists, BTC is expected to hold firmly above $81k, paving the way for a possible rebound toward $87,500.
However, if their conviction falters, Bitcoin may experience a sharp decline, dropping below $80k again.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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