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Bitcoin easily absorbs LTH exits – Is MicroStrategy’s 3% BTC share the reason?
Bitcoin has surprisingly absorbed Long-term Holder (LTH) selling pressure without breaking stride, and some experts believe that MicroStrategy’s aggressive accumulation of Bitcoin could be fuelling this trend. In recent times, it was observed that long-term holders have been steadily distributing their coins, which would typically lead to a significant sell-off in the market. However, instead, the price has remained stable, defying expectations.
According to data, LTHs have been offloading their holdings since May, but this has not resulted in any panic selling. This lack of reaction is an indication that strong hands are rotating out, and not capitulating. In fact, it suggests a mid-cycle redistribution – older coins being transferred to newer holders without any sense of urgency.
It’s worth noting that MicroStrategy, the firm formerly known as MSTR, has recently added another 4,980 more BTC to its inventory, bringing its total holdings to 597,325 bitcoins, which now accounts for approximately 3% of Bitcoin’s circulating supply. This pro-cyclical accumulation strategy has been a significant factor in the market’s recent performance and may be influencing investor sentiment.
The data suggests that July has historically been one of Bitcoin’s strongest months, with an average return of 8.9% over the past decade, making it an excellent predictor for future performance. With the LTHs rotating their holdings, the institutional demand tightening the float, and these bullish trends converging, there is a strong likelihood of a decisive breakout in the near term.
In essence, MicroStrategy’s aggressive accumulation and its increased share of Bitcoin’s total supply has inadvertently or intentionally created an environment that makes it difficult for investors to sell their coins.
Source: ambcrypto.com
