Market Structure Changes
According to Bitfinex data, the number of Bitcoins held by long-term investors has surged by 300% since the end of 2025. This increase indicates that more Bitcoins are being transferred to large investors and wallets with lower trading frequencies, extending the holding period of Bitcoin.
Mati Greenspan, founder of Quantum Economics and market analyst, noted: “While BitGo's definition of ‘high conviction investors’ is not entirely clear, the overall signal is very significant. Historically, the most dramatic Bitcoin price increases usually occur during periods of reduced circulating supply and demand rebounds.”
Bitfinex emphasized that this is the largest accumulation wave by long-term investors in two quarters since the market crash caused by the pandemic in 2020. Typically, these holders take a passive market stance, steadily accumulating and enduring short-term price fluctuations.
Liquidity Decline, Whales and Institutions Accelerate Accumulation
Data from core Bitcoin developer Jameson Lopp indicates that, with a total circulating supply of 20.03 million BTC, approximately 5.6 million Bitcoins have not moved for over ten years, thus not counted in liquidity estimates.
Bitfinex analysts pointed out that most Bitcoins are no longer circulating on exchanges but are concentrated among institutions and large investors, who trade less frequently. This trend has accelerated due to publicly traded companies like MicroStrategy actively increasing their Bitcoin reserves. MicroStrategy's holdings have reached 818,869 BTC, with a cost basis of about $6.2 billion, currently showing an unrealized gain of approximately $4.6 billion.
Ran Hammer from Orbs observed: “Those who truly understand the core logic of Bitcoin tend to accumulate as much as possible and rarely sell. As the availability of BTC loans increases, the amount of Bitcoin being extracted from the market continues to grow.”
A New Era of Market Psychology
According to a report from research firm CEX.IO, nearly 70% of recent Bitcoin buyers are currently holding profitable positions. This factor is seen as playing an important role in shaping market psychology, helping to reduce selling pressure.
CEX.IO analysts added that as most new investors see their investments “turn green,” selling pressure during minor pullbacks decreases, ultimately contributing to price stability.
Connor Howe, co-founder and CEO of Enso, believes that the narrative of Bitcoin's long-term supply shortage has evolved from theory to market reality, having observable effects on the ecosystem.
Connor Howe emphasized: “ETF inflows and institutional purchases are no longer just temporary fluctuations—they are gradually becoming a permanent part of the market structure. Therefore, supply is accumulating in the hands of increasingly steadfast holders, and as demand rises, shortages may become more pronounced.”