Long-Term Bitcoin Holders Accumulate 64.7B Amid Institutional Surge

Long-term Bitcoin holders have been actively accumulating the cryptocurrency since late March 2025, marking a significant trend in the market. This accumulation phase is notable as it follows a period of increased institutional interest in Bitcoin, with traditional financial firms playing a more prominent role. BlackRock’s spot Bitcoin ETF, for instance, has surpassed its Strategy ETF in terms of Bitcoin holdings, indicating a shift in the narrative and market structure around Bitcoin.

The Long-Term Holders indicator, a key metric for tracking the activity of Bitcoin’s most dedicated investors, shows that these holders have been buying large amounts of Bitcoin. This pattern suggests that long-term holders believe the current price of Bitcoin is undervalued, signaling confidence in its future value. This accumulation phase is different from previous market movements, such as the rally following the U.S. presidential election in 2024, where the price of Bitcoin shot upward. Instead, this current trend indicates a more stable and patient approach to investing in Bitcoin.

The increasing presence of institutional capital in the crypto space brings several changes. Firstly, it introduces a fresh narrative about Bitcoin, positioning it as a legitimate asset within the traditional financial system. Secondly, it alters the market structure around Bitcoin and other crypto assets, making it more accessible to traditional investors through regulated products like ETFs. However, this shift also raises concerns about centralization, as a few large institutions could potentially control a significant portion of the Bitcoin market, influencing its price and dynamics.

BlackRock’s dominance in Bitcoin ETF holdings is a clear example of this trend. The company’s spot Bitcoin ETF now holds around $64.7 billion in Bitcoin, surpassing its Strategy ETF. This milestone underscores the trend of institutional capital moving into Bitcoin via regulated products, giving traditional investors a means of gaining exposure to Bitcoin without directly holding it. This shift is a sign of Bitcoin’s increasing acceptance in mainstream finance, but it also raises questions about the decentralization of the cryptocurrency.

The involvement of large institutions like BlackRock and Mubadala, the sovereign wealth fund of Abu Dhabi, in the Bitcoin market could create risks for retail investors. If a small number of big institutions control a large portion of Bitcoin, they could influence the market without real influence over the decentralized future of the Bitcoin system. This trend towards centralization is observable in the advent of Bitcoin ETFs and the increasing involvement of massive international institutional investors.

In conclusion, the recent activity in the Bitcoin market reflects a significant shift, with long-term investors accumulating Bitcoin and institutional players gaining increasing influence. While Bitcoin shows continued resilience and growth, the means by which it achieves those ends—and the market’s overall structure—are undergoing changes that could have lasting impacts on its decentralization. As traditional finance embraces Bitcoin as a legitimate asset, it’s clear that the cryptocurrency’s future is being shaped by institutions, presenting both opportunities and risks. Bitcoin’s story is no longer just about the cryptocurrency itself but also about its integration into the global financial landscape.