Long-Term Holders Now Dominate The Bitcoin Ecosystem

• Bitcoin exchange deposit addresses have dropped sharply, showing stronger long-term conviction among investors.
• ETF access and reduced retail activity shift Bitcoin’s role into a long-term store of value.

For years, many have dismissed Bitcoin as a mere speculative tool. But now? That picture is starting to crack. According to on-chain analyst Darkfost of CryptoQuant, there’s been a major shift in how investors are treating BTC—and it’s evident in the data on addresses depositing Bitcoin to exchanges.

Going back between 2015 and 2021, the number of addresses actively sending BTC to exchanges was consistently increasing, averaging around 180,000 per year. But since the 2021 cycle, that trend has reversed sharply.

Today, the data is moving much lower. The 10-year average is now sitting at 90,000. The 30-day moving average is down to 48,000. Even on a daily basis, the number is only about 37,000 addresses. It may sound trivial at first glance, but if you look closely, it’s a big signal: investors are no longer in a rush to sell. They’re starting to hodl BTC, not trade it all the time.

Source: CryptoQuant

ETFs, Lower Retail Activity, and the Rise of Bitcoin Savers

Darkfost highlights several reasons why this trend has changed drastically. One of them is the presence of Bitcoin ETFs. Many investors, especially institutions, now prefer to buy practical ETF products rather than the hassle of holding digital assets directly. No need to think about wallets, private keys, or the risk of forgetting passwords.

On the other hand, retail investor participation in this cycle is also lower than in the past. This could be because more people realize that daily trading is not for everyone. As a result, there are fewer active addresses connected to exchanges. But that doesn’t mean the market is quiet—on the contrary, many remain active, but as depositors, not traders.

Furthermore, more and more companies are holding Bitcoin as reserves. They see BTC as no longer just a short-term investment instrument, but an asset that can be held for a long time. Think of it like digital gold, but with high liquidity and growth potential.

Why Market Volatility Doesn’t Shake Long-Term Holders

Interestingly, the report from CNF supports the same thing. Long-term holders remain steadfast despite the market’s turbulence. They believe the bullish trend is still going on, and are not easily provoked to panic. Even when massive liquidations occur, they remain calm.

Not only that, Bitcoin options trading volumes have soared by more than 180%. This means that while some players are avoiding the spot market, speculative and hedging activities are increasing in the derivatives segment. On the other hand, we also highlighted the large outflows from BTC and the inflow of stablecoins—a classic signal that whales are starting to get comfortable with risk again.

At the time of writing, BTC was changing hands at about $105,334.93 after rising around 4% in the last 24 hours. Daily trading volumes also recorded a high figure of around $67.16 billion.