Analyst: BTC supply shortage deepens as long-term holders control 84%

Amid Bitcoin's rebound from $58,000 to $64,000 following its June slump, an analysis suggests the supply shortage is intensifying as the proportion of BTC held by long-term investors nears an all-time high. Joao Wedson, founder of crypto analytics firm Alphractal, noted that long-term holders (LTH) now possess 5.2 times more BTC than short-term holders (STH). In contrast, the amount of BTC held by STH has fallen to its lowest level since 2016. Currently, LTH control 84% of the total BTC supply, leaving just 16% in the hands of short-term investors. Wedson suggested this shift indicates a strengthening conviction among long-term investors. He concluded that if this structure persists and new demand enters the market, the limited circulating supply could cause new capital inflows to have a more significant impact on BTC's price.