Experts Analyze Bitcoins Growth Slowdown Amid Long-Term Holder Selling Pressure

Pressure from long-term holders of the first cryptocurrency is keeping Bitcoin’s price around the $100,000 mark. However, Charles Edwards, the founder of Capriole Investments, believes this situation will soon change.

Since the launch of spot Bitcoin exchange-traded funds in January 2024, long-term holders (LTH) who have kept their assets for over two years have been “offloading to Wall Street” and “liquidating positions,” according to the expert.

The supply has been entirely absorbed by a rapidly expanding group of firms accumulating reserves in digital gold. Edwards suggests this trend will accelerate as more “imitators” of this strategy enter the market.

Historically, aggressive purchasing by investors holding assets for more than six months has signaled bullish momentum for Bitcoin in the short term. The critical question is whether the treasury-holding companies can maintain their high accumulation rates, noted the Capriole founder.

“In the near term, we still need to overcome weakness in on-chain data, which could generally be better right now. If firms can continue their relentless buying, it should be achievable,” Edwards concluded.

Japanese company Metaplanet, dubbed the “Asian Strategy,” has additionally acquired 1,005 BTC for approximately $108.1 million, with an average price of around $107,600 per coin.

With a total of 13,350 BTC, the firm has now secured the fifth-largest Bitcoin reserve among corporations.

Metaplanet has also issued zero-coupon bonds amounting to $208 million, with the raised funds earmarked for further purchases of digital gold.

The co-founder of Strategy hinted at a potential increase in the company’s Bitcoin reserve by sharing a chart of their corporate BTC portfolio tracker. Historically, this precedes an official announcement from the firm about a new cryptocurrency acquisition.

“In 21 years, you’ll regret not buying more,” wrote the entrepreneur.

Since August 2020, Strategy has amassed 592,345 BTC, making it the undisputed leader in Bitcoin treasury volume among companies.

In a post on X (formerly Twitter), the account SightBringer provided insights into why the massive purchases by corporations over the past six months have not significantly impacted Bitcoin’s price.

“They are buying billions, yet the price remains unchanged because this is no longer a market — it’s a controlled ignition chamber,” stated the authors of the resource.

They believe that the cryptocurrency’s breakout is being deliberately restrained by major players who are accumulating Bitcoin ahead of the next growth phase. The experts highlighted several aspects of the current situation:

“It’s not about price action. It’s about positioning before reaching the second cosmic velocity. Once ignition occurs, the game will be over. The real question isn’t ‘why isn’t the price moving?’ but rather who is monitoring and why to prevent it from happening,” they concluded.

To recall, CryptoQuant has forecasted that Bitcoin could rise to $160,000 following a phase of asset accumulation by long-term investors.