After a prolonged decline throughout the current bull cycle, the percentage of Bitcoin held by wallets aged between one and five years is beginning to rise again, suggesting a potential shift in investor sentiment.
According to data visualized by Bitcoin Magazine Pro, this uptick follows several years of steady distribution by long-term holders who had previously been taking profits during Bitcoin’s price appreciation.
The trend of long-term holders reducing their stake is common in bull markets. As prices surge, investors with sizable gains accumulated over the years often decide to lock in profits. This behavior leads to a natural drop in the share of BTC held by older wallets — particularly those in the one-to-five-year range. Since 2020, this group has gradually relinquished control of their coins, adding to the available market supply.
However, recent data suggests that this dynamic is starting to change. The chart shows a notable reversal in the HODL wave of 1y-5y wallets, indicating that fewer of these coins are being moved or sold. Instead, more coins are aging into this category, which may signal growing conviction among medium-term holders that Bitcoin’s price has room for further growth — or at least that it’s worth holding onto.
This renewed accumulation may reflect broader market sentiment, where investors are increasingly willing to commit to longer holding periods despite high valuations. With Bitcoin still trading near all-time highs, such behavior suggests faith in the asset’s long-term potential or caution over missing out on future gains.
The chart also highlights a historical pattern: during past cycles, the HODL wave for 1y-5y wallets tended to bottom out and reverse before major market shifts. If this pattern holds, the current uptick could foreshadow a cooling-off period in distribution and a potential foundation for future upward momentum.
Ultimately, while it’s too early to confirm a complete trend reversal, the increase in long-term holding suggests a maturing investor base and renewed confidence in Bitcoin’s future — a development that could have far-reaching implications for market dynamics in the coming months.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/market/long-term-bitcoin-wallets-start-accumulating-again/