Bitcoin Surges 107% as Long-Term Holders Accumulate

Bitcoin's price has recently surged to $107,000, bringing the majority of holders back into profitable territory. Despite this significant price increase, there has been a surprisingly muted distribution of the cryptocurrency. Long-term investors, known as LTHs, are demonstrating remarkable patience by continuing to accumulate Bitcoin rather than selling their holdings. This behavior suggests a strong conviction in the further upside potential of Bitcoin and indicates that supply pressure remains subdued.

One key indicator that reflects this trend is the decline in realized profits. This metric shows that fewer investors are cashing out after buying cheaper in the past. Instead, many holders appear convinced that the rally has momentum and prefer to ride it out rather than locking in gains. Analysts view this as a bullish sign, as it demonstrates that holders are confident in the continued appreciation of Bitcoin's price.

Data reveals that long-term holders—those who haven’t moved their coins in over a year—have reached an all-time high supply level. This signals significant conviction among these investors. Simultaneously, ETF inflows into Bitcoin continue to be strong, injecting new demand into the market. The combined effect of reduced selling pressure and increased institutional support contributes to a solid foundation for Bitcoin's price appreciation.

With strong ETF inflows, growing LTH dominance, and muted profit-taking, Bitcoin’s fundamentals appear robust. While price appreciation may continue, the reluctance of many holders to sell could limit volatility. However, any sudden news could trigger profit-taking, so investors should remain vigilant. The current market dynamics suggest a tense equilibrium between patient long-term investors and an influx of leveraged capital, with on-chain data indicating a powerful trend of accumulation and holding.

The adjusted Spent Output Profit Ratio (aSOPR) is hovering just above the breakeven point of 1.0, suggesting that the coins being sold are primarily from recent buyers or short-term traders, not from the long-term cohort that forms the market's bedrock. This is further supported by the Liveliness metric, which continues to decline, indicating that older, long-dormant coins are not being moved to exchanges for sale. This creates a supply-side squeeze, where a vast portion of BTC is effectively illiquid and held with strong conviction.

Institutional demand continues to pour into the market, providing consistent buy-side pressure. Analysts highlighted a "constructive" tone, pointing to significant net inflows into spot Bitcoin ETFs. This demand is not just from ETFs; corporate treasuries are also expanding their BTC allocations. This steady stream of capital is quietly increasing Bitcoin's realized cap, a sign of genuine capital entering the ecosystem. However, this stability is being tested by a build-up of leverage, with leveraged long positions increasing and funding rates across perpetual futures markets turning positive.