If stock investors started dumping their holdings, you’d think trouble was brewing. But in crypto, the opposite is true. Bitcoin wallets holding BTC for over five months are selling, and analysts see it as a bullish signal. Markus Thielen of 10x Research told CoinDesk, “Sharp declines in long-term holder supply have frequently coincided with strong bitcoin rallies.” Over 1.1 million BTC moved hands after Bitcoin surged past $100K, reflecting growing demand among short-term traders, according to Glassnode.
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Bitcoin Supply Crisis Builds as Exchange Balances Drop
Another bullish indicator is the decline in Bitcoin held on centralized exchanges. Over the past six months, exchange balances have dropped from over 3 million BTC to 2.7 million. This limits coins available for quick sales. While many see this as a supply shock, Glassnode noted that some of these coins have simply shifted to ETF wallets. Bitcoin ETFs now manage nearly $40 billion, up dramatically from $1.17 billion a year ago.
ETFs and Politics Push Bitcoin Toward New Heights
Bitcoin dominance is climbing, defying predictions of another altcoin boom. Spot Bitcoin ETFs have driven institutional inflows, with analysts forecasting a $200K price target by 2025. Political support is also bolstering Bitcoin’s status. President Trump recently signed an executive order to explore a national Bitcoin stockpile, and states like Wyoming and Arizona are pushing pro-Bitcoin legislation.
Analysts Declare the End of Alt Season
Bitcoin’s dominance, now nearing 59%, underscores its decoupling from altcoins. Tuur Demeester, a market analyst, said Bitcoin is “leaving ‘crypto’ in the dust.” Historically, altcoins would rally alongside BTC, but this cycle is different. As River Financial’s Sam Wouters put it, “The truth is, there is no more alt season.” Traders are now betting on Bitcoin’s exceptionalism to lead the next market surge.
At the time of writing, Bitcoin is sitting at $105,337.51.
