Bitcoin Holders May Lock In Assets As Price Nears $130,000

Bitcoin, the world's largest cryptocurrency, is on the brink of a significant transformation, not just in terms of price but also in how it is perceived and held by investors. Bitwise CEO Hunter Horsley recently shared insights suggesting that once Bitcoin reaches $130,000, the selling pressure is likely to subside as holders opt to lock in their assets for the long term.

Horsley's prediction is based on the observation that as Bitcoin's price increases, the incentive to sell diminishes. Holders are more likely to borrow against their Bitcoin rather than liquidate their assets, especially when the price is in a high range. This behavior is further supported by the growing number of lenders in the market, providing more options for holders to access liquidity without selling their Bitcoin.

The trend of borrowing against Bitcoin rather than selling it is already evident in the market. For instance, one of the largest financial institutions has begun using crypto ETFs as collateral, indicating a growing acceptance of digital assets as a viable form of collateral. If this trend continues, it could further propel Bitcoin's price, as the supply of Bitcoin available for sale would decrease.

Currently, Bitcoin is trading near $107,000. Some older wallets, especially those holding since the early days, are taking profits, which makes sense given the massive gains. However, Horsley points out that this selling pressure could fade soon. Once BTC breaks past its all-time highs, more holders may start seeing it as long-term wealth.

On-chain data suggest that a growing number of Bitcoins are being withdrawn from exchanges and moved into cold storage. Since early 2025, exchange balances have dropped 14%, down to just 2.5 million BTC, the lowest since August 2022. Meanwhile, institutions like BlackRock, Fidelity, MicroStrategy, and Metaplanet are holding billions in Bitcoin. These entities aren’t short-term traders. They’re thinking in years, not months.

As Bitcoin’s value grows, so does the number of lending platforms offering BTC-backed loans. According to Bitbo, long-term holders (those holding for over 155 days) are up around 215%, with an average buy price of $34,414. Horsley also noted that instead of selling, these holders might borrow against their Bitcoin, keeping their assets while still unlocking value. That means even less Bitcoin will be available for buyers.

Despite the uncertainty, Horsley's prediction offers an optimistic outlook for Bitcoin's future. If holders continue to borrow against their assets rather than sell, it could lead to a sustained upward trend in Bitcoin's price. This shift in behavior, coupled with the growing acceptance of digital assets as collateral, could further cement Bitcoin's position as a valuable asset in the financial market.