Bitcoin easily absorbs LTH exits – Is MicroStrategy’s 3% BTC share the reason?

• Bitcoin absorbs LTH selling as Strategy tightens supply.
• July’s bullish track record and institutional demand hint at a potential breakout.

Bitcoin [BTC] LTHs are steadily distributing their coins, yet the market is absorbing the supply without breaking stride — a sign of strength in disguise.

Meanwhile, Strategy’s (formerly MicroStrategy) aggressive accumulation, now commanding 3% of Bitcoin’s total supply, shows a broader institutional appetite building.

This could be fuel for Bitcoin’s next major move.

LTH selling without panic?

While Bitcoin has stayed trapped between $100,000 and $110,000 since May, the data showed signs of something deeper.

Source: CryptoQuant

Long-term holders — those who’ve held coins for over six months — have been offloading. Yet, this LTH selling hasn’t rattled the price. Instead, BTC has absorbed the outflow cleanly.

This kind of absorption often shows a healthy market structure and suggests that strong hands are rotating out, and not capitulating.

In fact, it suggests a mid-cycle redistribution—older coins rotating to newer holders without panic. This sort of churn is typically seen before the next leg of a bull run.

Source: CryptoQuant

July is coming—and so is a breakout?

Historically, July has been one of Bitcoin’s strongest months, with a median return of 8.9% and a positive close in 8 of the last 10 years.

Source: X

This now converges with two major bullish forces: LTHs steadily rotating supply into strong hands, and institutional demand tightening float.

If the market continues absorbing this supply as it has over the past month, a decisive breakout may be in sight.

With July’s track record and current structural support, perhaps a surprise, even for the bulls, is in order.