What do these market changes signify? According to a Bitfinex report, the amount of Bitcoin held by long-term investors has increased by 300% since the end of 2025. This surge indicates that a significant amount of Bitcoin is shifting into the hands of large investors, with lower trading frequency, thereby extending holding periods. Mati Greenspan from Quantum Economics stated, “While it’s unclear how BitGo defines ‘high conviction investors,’ the overall signal is noteworthy. Historically, Bitcoin’s strongest rebounds typically occur during periods of reduced circulating supply and rising demand.”
This data shows that since the market downturn caused by the pandemic in 2020, the accumulation by long-term holders has reached its peak, with these holders generally adopting passive strategies, slowly accumulating while enduring short-term price fluctuations.
How will this affect Bitcoin liquidity? Research by Bitcoin developer Jameson Lopp indicates that out of the 20.03 million BTC in circulation, approximately 5.6 million have remained inactive over the past decade, showing signs of liquidity tightening. Experts at Bitfinex emphasize that this trend is primarily driven by institutional and large investors who are transferring Bitcoin from exchanges to their own wallets. Public companies like MicroStrategy are accumulating BTC at what appears to be an aggressive pace.
Ran Hammer from Orbs noted, “Those who truly understand the core logic of Bitcoin tend to accumulate as much as possible and sell very little. As the availability of BTC loans increases, the amount of Bitcoin being withdrawn from the market is also on the rise.”
Research from CEX.IO shows that nearly 70% of recent Bitcoin investors are currently in profit, which is affecting market sentiment and reducing short-term selling pressure. CEX.IO believes that this newfound confidence is helping to stabilize the market.
Connor Howe, CEO of Enso, pointed out that the narrative of Bitcoin supply scarcity has now significantly impacted the ecosystem, no longer just a hypothetical discussion. Connor Howe confirmed, “ETF inflows and institutional purchases are no longer just temporary fluctuations—they are becoming a permanent part of the market structure. Therefore, supply is increasing with the accumulation of increasingly steadfast holders, and as demand rises, the scarcity may become more pronounced.”
The increase in loyal Bitcoin holders indicates a deeper level of adoption in the market, potentially leading to a more strategic long-term investment approach against the backdrop of supply tightening. This shift could play a key role in shaping the future trajectory and price levels of Bitcoin.