Long-term Bitcoin holders saw market cap surpass $10 billion for the first time

The realized capitalization of long-term holders of Bitcoin (LTH) surpassed $10 billion this week for the first time. This highlighted the growing confidence among investors who hold the asset for extended periods, typically more than 155 days.

The LTH metric is particularly crucial because it reflects these holders’ conviction in Bitcoin’s long-term potential, as they are less likely to sell during short-term market fluctuations.

$10 billion milestone

The latest increase in realized capitalization essentially signaled a broader trend of increasing maturity in the Bitcoin market, where those who believe in the asset’s lasting value hold more capital, according to the contributor’s analysis by CryptoQuant Amr Taha.

Another analyst, Alex Adler, weighed in on the significant reduction in Bitcoin LTH selling pressure, noting that it has declined 3.7 times since the asset started trading below the 69,000 price level dollars This decline indicates that a significant portion of these holders are less likely to sell their Bitcoin at current levels, demonstrating greater confidence in the asset’s trajectory.

It is important to remember that a ratio below 1 suggests that sales are occurring at a loss, so this decrease in selling pressure implies that fewer long-term holders are willing to part with their Bitcoin at a loss.

Volatility ahead?

Both on-chain data and the perpetual futures market are showing signs of stabilization, with profit and loss-taking activities declining and funding rates returning to neutrality among digital assets.

According to Glassnode’s observation, this pattern highlighted a significant decrease in speculative actions among investors in the market, which spans several asset classes. Meanwhile, the market has also remained in a structural downtrend for more than five months, indicating a period of consolidation. Historically, these calm phases tend to be brief, often leading to increased volatility.

“Market speculation remains relatively subdued for Bitcoin, with investors locking in only marginal gains and losses and a reset in perpetual exchange markets. Historically, periods of calm and quiet market structure are short-lived and often precede an expectation of increased volatility.”

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