Bitcoin’s Long-Term Holders Resuming Accumulation

Bitcoin’s long-term holders have resumed accumulation, indicating a significant shift in investor sentiment despite recent market turbulence. Data from the on-chain analytics platform Glassnode shows that the “BTC: Long-term holder net position change” metric has flipped positive for the first time this year, suggesting long-term Bitcoin investors are capitalizing on current market conditions to add substantial amounts of BTC to their holdings.

Long-Term Holders Add 167,000 BTC Amid March Crash

Earlier this month, Bitcoin’s price plummeted from above $90,000 to around $80,000 during a rapid sell-off. This shocking decline led to a wave of liquidations among short-term investors. However, long-term holders seized this opportunity and viewed the sub-$90,000 levels as a buying chance instead of capitulating to fear.

In essence, coins are moving into wallets that haven’t traded their BTC for a considerable time, marking a notable shift since the start of 2025, which began with a negative net position change. This signifies the first net accumulation by these “HODLers” this year. Glassnode’s Long-Term Holder Net Position Change metric, previously in the red, has now turned “green” as long-term investors began aggressively accumulating during the downturn.

On-chain data reveals that long-term holders increased their net Bitcoin holdings by over 167,000 BTC in the past month, valued at nearly $14 billion. In short, this seasoned holder cohort began acquiring cheap BTC while short-term sentiment was at its lowest.

Is A Bitcoin Price Recovery Brewing?

The timing of the net position flip from red to green among long-term holders is particularly striking given Bitcoin’s price action in the past two weeks. It suggests that much of the Bitcoin crash was prompted by panic-selling from short-term holders. This behavior mirrors past market cycles between August and September 2024, when long-term holders aggressively accumulated during price dips.

Moreover, Glassnode’s long-term holder metric isn’t the only indicator of positive sentiment among substantial holders. After weeks of uncertainty, Bitcoin exchange-traded funds (ETFs) have begun seeing net inflows again. On March 17, spot Bitcoin ETFs attracted approximately $274.6 million, indicating the largest single-day inflow in 28 days and signaling renewed investor interest.

The following day brought in another wave of fresh capital, with around $209 million entering Bitcoin funds on March 18. This three-day streak marks the first sustained positive inflow since February 18, a period characterized by consecutive outflows from Bitcoin funds.

As of now, Bitcoin is trading at $83,500.

Chart from Tradingview.com