A seismic shift in Bitcoin ownership is underway. According to on-chain analytics firm CryptoQuant, long-term Bitcoin holders have just locked in the largest single-month accumulation in history, acquiring a staggering 800,000 BTC in just 30 days.
This figure represents the highest net monthly growth rate for coins that had not moved for more than six months, meaning they have now officially entered long-term holder (LTH) status. Remarkably, this accumulation did not occur during a bear market dip. These coins were purchased while Bitcoin was trading between $95,000 and $107,000, with the spot price still holding strong above $100,000 at the time of this report.
Understanding Long-Term Holder Behavior
The term "LTH" can be tricky. It is not about the address itself, but the age of the coins. A coin is classified as "long-term" if it remains unmoved for more than 180 days. Therefore, this record accumulation is not just about whales storing coins; it's a measure of how long those coins have remained dormant in wallets.
What we are witnessing is a quiet, mass locking of supply, indicating that investors are holding with more conviction than ever before. In Bitcoin's 15-year history, similar peaks of accumulation have only occurred six times, each preceding significant price movements.
The Great Shift: Whales Exit as ETFs and Dolphins Buy
Since May 9th, Bitcoin has exhibited remarkably low volatility, trading within a $10,000 range. It briefly surged to approximately $112,000, slightly above its previous high, but the momentum was short-lived. The reason for this stagnation is not a lack of interest.
Bitcoin ETFs have been on a record-breaking streak, absorbing $3.5 billion over 12 consecutive trading days in the past month. They have seen net inflows in 9 of the past 11 weeks. Yet, despite this massive institutional demand, the price has barely budged. Why?
Markus Thielen, Head of Research at 10x Research, provided a blunt explanation: "Ownership is changing. We are not seeing much net demand at the moment because it is almost entirely offset by selling from large, early investors." In other words, the original whales—those who bought early—are distributing their holdings. However, they are selling slowly, methodically waiting for institutional demand from ETFs and corporate buyers to absorb the supply.
The Rise of the "Dolphins"
Julio Moreno, Head of Research at CryptoQuant, identifies the real powerhouse buyers this year as wallets holding between 100 and 1,000 BTC—a cohort they've nicknamed "dolphins." ETFs and large corporations likely fall into this category. These are not retail investors or mega-whales; they are institutions that distribute their cryptocurrency across multiple wallets.
For instance:
- BlackRock operates approximately 550 wallets, with each wallet holding an average of 1,290 BTC.
- MicroStrategy controls about 490 wallets, with an average holding of 927 BTC per wallet.
Although these entities appear as medium-sized holders individually, they are hoarding hundreds of thousands of coins through vast networks of smaller wallets. "In reality, these entities are large holders who have purchased thousands of bitcoins," Moreno clarified.
The Steadfast Hold of Early Miners and the Whale Exodus
Meanwhile, the largest Bitcoin holders of all time—early Chinese mining farms—remain active in the market. Between 2013 and 2021, China controlled up to 75% of the global hash rate and mined as many as 15 million Bitcoin. Today, they are estimated to still hold at least 5 million BTC.
In every previous bull market, these dormant wallets began selling into exchanges, creating massive selling pressure. This cycle is different. Thielen points out that, so far, these veteran wallets are holding tightly, releasing only the amount of Bitcoin that ETFs and corporations are ready to absorb.
However, not all corporate buyers are as aggressive as they were earlier in 2024. MicroStrategy, while remaining the largest public corporate buyer, has slowed its acquisition pace due to tightening share premiums and increased competition from other companies adding BTC to their balance sheets.
The Current Balance of Power
The market is currently in a delicate equilibrium:
- Whales (wallets holding 1,000-10,000 BTC) have been net sellers leading into 2025.
- Retail investors (wallets holding <1 BTC) are also distributing their coins.
- Dolphins/ETFs (wallets holding 100-1,000 BTC) are the dominant net buyers.
As long as the buying pressure from dolphins outpaces the selling pressure from whales and retail, the market remains stable. If that balance reverses, stagnation follows. "This imbalance creates a slight bearish bias," Thielen stated. "The likelihood of a breakout is low unless our tactical flow indicator shows a clear shift. Expect consolidation to continue until that signal improves."
For those looking to navigate these complex market dynamics, understanding on-chain data is crucial. You can explore real-time market analysis tools to gain a deeper insight into these powerful trends.
Frequently Asked Questions
What defines a Bitcoin long-term holder (LTH)?
A long-term holder is defined by the age of their coins, not their identity. Any Bitcoin that has not been moved from its wallet for more than 180 days is statistically classified as being held by an LTH. This means a single address can contain both long-term and short-term coins.
Why are large, early investors (whales) selling now?
Many early investors have seen life-changing gains and are taking profits at what they consider to be favorable prices. They are distributing their holdings slowly to avoid crashing the market, leveraging the constant demand from new institutional players like Bitcoin ETFs to exit their positions smoothly.
How do Bitcoin ETFs affect the market's supply?
ETFs act as massive, constant buyers on the demand side. Each share created represents a claim on actual Bitcoin, which the issuer must purchase. This creates a persistent buy-side pressure that absorbs coins being sold by whales and miners, effectively locking up supply in custodial wallets.
What is the significance of the 800,000 BTC accumulation?
This record accumulation signifies extreme conviction among a cohort of investors. They are choosing to withdraw a historic amount of coins from active trading circulation and lock them into long-term storage, even at near-all-time-high prices. This reduces the available supply, which can create upward price pressure in the future.
Who are the "dolphins" in the Bitcoin market?
"Dolphin" is a term popularized by analytics firms to describe entities that hold between 100 and 1,000 BTC. This group is distinct from retail and includes large institutions, ETFs (through their custodian wallets), and corporations that manage their Bitcoin holdings across multiple addresses rather than a single wallet.
Is the selling pressure from whales a bearish sign?
Not necessarily. Profit-taking is a normal and healthy part of any market cycle. The key metric is the net flow. The current market has found a balance where new institutional demand is largely absorbing this selling, leading to a period of consolidation rather than a sharp decline.