Bitcoin (CRYPTO: BTC) is trading near $87,000 in mid-December 2025, down approximately 26% from its October all-time high of $126,080. While price volatility continues to dominate headlines, a deeper analysis of long-term holder behavior reveals critical insights about where the market might be headed next. Understanding whether experienced investors are building positions or taking profits provides valuable clues about Bitcoin’s near-term trajectory and the underlying strength of this market cycle.
Understanding Long Term Holder Behavior
Long-term holders, defined as wallets holding Bitcoin for more than 155 days, represent experienced investors whose actions often signal major market shifts. These participants control substantial portions of the circulating supply and typically possess deeper market knowledge gained through multiple cycles.
Recent data indicates that long-term holder supply reached nearly 16 million BTC in late 2024, representing roughly 80% of the circulating supply. However, this percentage has declined modestly throughout 2025, suggesting some profit-taking activity has emerged as Bitcoin crossed major psychological milestones above $100,000.
The distinction between long-term and short-term holders matters because each group responds differently to market conditions. While newer participants often react emotionally to volatility, seasoned holders demonstrate conviction that extends beyond immediate price action, creating identifiable patterns that analysts use to identify accumulation phases and distribution zones.
Recent Data Shows Mixed Signals
Between December 1 and December 10, accumulation wallets added 75,000 BTC, with a massive 40,000 BTC purchased in a single day during that period. These specialized addresses, characterized by frequent inflows and minimal outflows dating back at least 7 years, now hold approximately 315,000 Bitcoin collectively. This surge suggests that some experienced market participants view current price levels as attractive entry points.
However, this accumulation contrasts with broader distribution trends observed throughout much of 2025. The reduction from peak long-term holder supply levels indicates that some experienced investors chose to monetize portions of their holdings when Bitcoin crossed $100,000 earlier this year. The emergence of U.S. spot exchange-traded funds created unprecedented liquidity and attractive exit opportunities for holders who accumulated during the 2022 bear market below $20,000.
Many long-standing holders chose to sell in 2025 after years of patient accumulation. These sales were primarily lifestyle driven rather than motivated by negative fundamental views. For investors who held …
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