Bitcoin (BTC), the world's largest cryptocurrency by market capitalization, recently experienced a sharp decline in its value. At the time of writing, BTC was trading at $58,679, marking a 6.69% drop over the past 24 hours. This decline follows a recent upward trend, during which Bitcoin reached a high of $64,404 last week. However, the daily downturn has erased the week's gains, resulting in a 1.71% drop over the past seven days.

This sudden price decline raises concerns about potential panic selling and highlights the role of long-term holders in maintaining Bitcoin's market stability.

Long-Term Bitcoin Holders Reach $10 Billion in Supply

CryptoQuant analyst Amr Taha noted that long-term Bitcoin holders, who are less likely to sell during market downturns, have significantly contributed to Bitcoin's stability. "For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion," Taha stated. He emphasized that these investors have spent $10 billion acquiring Bitcoin and have refrained from selling despite the current market conditions.

This observation aligns with data showing that Bitcoin holders who have surpassed the 155-day holding period are continuing to keep their assets. Moreover, institutional investors have increased their Bitcoin purchases over the past month. Major players like Marathon, BlackRock, Galaxy Digital, and Metaplanet have expanded their holdings during this period. These institutions, characterized by their large accumulation phases, typically hold their assets for extended periods, ranging from five months to three years, compared to smaller holders who are more likely to sell.

Supply from Long-Term Holders Increases by 262,000 BTC

The supply of Bitcoin held by long-term investors has seen substantial growth. According to CryptoQuant, these holders now control over 75% of the total Bitcoin supply.

"In the past 30 days, Long Term Holders supply increased by 262,000 BTC. They now control 14.82 million Bitcoin, which accounts for 75% of the total supply."

The firm reported through its social media channels.

The last 30 days have witnessed significant volatility in Bitcoin's price, reaching a low of $49,577. These fluctuations have prompted long-term holders to accumulate more Bitcoin, capitalizing on lower prices during market downturns to sell later during prolonged bull markets. This strategy allows them to buy at lower prices and sell for higher returns.

Despite the recent downturn in Bitcoin prices, long-term holders view this as an opportunity to accumulate more assets, thereby applying buying pressure that could push prices higher. When the market experienced a crash earlier this month, large holders increased their inflow between August 5th and 9th, helping drive prices back up to the $60,662 resistance level.

If this pattern continues, Bitcoin prices could once again rise above the $60,000 mark.