Bitcoin has reached a historic milestone by surpassing the $100,000 mark, affirming its status as the largest cryptocurrency by market capitalization. Currently, Bitcoin’s all-time high price is approximately $103,679. This landmark achievement has inspired a comprehensive analysis of Bitcoin's supply distribution, providing insights into long-term and short-term holder behaviors, along with broader implications for the market.
The analysis from CryptoQuant’s Crazzyblockk examines how this milestone affects Bitcoin's realized cap and market structure. The milestone reflects increased global adoption and investment confidence while raising questions about the market's future trajectory. The analysis reveals BTC supply distribution among key groups: long-term holders (LTHs) and short-term holders (STHs), with over 14.5 million BTC held by LTHs and nearly 5 million BTC held by STHs.
Although the price surge is notable, only 52% of Bitcoin’s realized cap is held by STHs, contrasting previous market peaks where this exceeded 80%. This indicates a deviation from typical market patterns, as realized cap trends usually show LTH dominance during bear market phases and STH dominance during bull peaks.
The current low realized cap concentration among STHs suggests reduced selling pressure, potentially supporting continued price growth. A significant proportion of BTC held by LTHs indicates market confidence, reducing the risk of abrupt price corrections and reflecting long-term investor trust.
The current supply distribution aligns with long-term bullish prospects for Bitcoin. The reduced role of STHs signals potential for further upward movement without triggering a significant sell-off. The stability provided by LTHs and the low STH participation in realized cap underscore potential for future growth, with market confidence remaining strong.
