This phenomena is also reflected across #LTH (Long-Term Holder) Supply (coins held > 155-days), which is at a new #ATH of 14.46M #BTC. This reflects coins acquired immediately after the #FTX failure maturing into LTH status.

Leading up to the approval of spot #ETFs in January, speculation surged, leading Long-Term Holders (#LTH) to either cash out for profit or reallocate their holdings into new #ETF products. This resulted in a significant decrease in LTH supply balance by approximately 299.5K #BTC since November, from a peak of 14.996M BTC. Notably, analysis of #GBTC flows, with around 661k BTC inflow and 151.5K #BTC outflows in 2021, suggests that remaining #LTH supply, totaling 148K #BTC, is being spent by investors. This trend aligns with previous research indicating LTHs begin distributing their holdings as the market approaches all-time high prices.

We can see that the total volume of #LTH Supply held in loss is currently 777.8K #BTC, and is trending towards the zero bound as prices rise. Just 6.5% of the aggregate #LTH supply is therefore held in loss.

Previous instances where the LTH cohort held a similar coin volume in loss corresponds with early bull market conditions (with 2019 as an arguable outlier).

As prices rise, Long-Term Holders (LTHs) are selling their holdings. #LTH Supply has decreased by -900K #BTC since December 2023, with #GBTC trust outflows accounting for about one third (-286K #BTC). Meanwhile, Short-Term Holder Supply has increased by +1.121M #BTC, absorbing #LTH selling pressure and acquiring 121K #BTC from exchanges.