Bitcoin ($BTC): Institutions are leaving, individuals are buying… Long-term holders are strengthening their holding strategies.

As the Bitcoin (BTC) profit-taking heat subsides, long-term holders appear to be maintaining their buy positions without selling at recent price peaks, in contrast to the record trading activity seen in July. This trend suggests changes in market participant composition. According to on-chain data analysis firm glassnode, recent long-term holder realized profits have significantly decreased from the daily level of $1 billion in July. Unlike the sharp profit-taking by short-term holders at the end of 2024, current long-term investors who bought Bitcoin during the 2020-2022 bull market and are now in their 3-5 year holding period are realizing some profits, but mostly maintaining their positions and observing. This long-term holder behavior is attributed to their psychological commitment to a 'holding strategy' even as Bitcoin prices fluctuate near the year's high of $123,091. Data from CryptoQuant reflects this trend, showing decreased institutional trading and small buy orders dominated by individual investors in the futures market. This indicates a structural market transformation. While past bull market peaks were characterized by institutional distribution, the current market is centered on individual investors, suggesting more potential for price appreciation. Market participation indicators are also noteworthy. Crypto market analyst Ali Martinez recently reported over 364,000 new Bitcoin addresses in a day, the highest in the past year, indicating continued individual investor inflow. However, price momentum seems somewhat subdued. Bitcoin was trading at approximately $121,224, up 2.6% daily and 5.9% weekly. While the annual growth is a robust 97.9%, the two-week and 30-day growth rates are slowing at 1.9% and 2.6% respectively. Market sentiment indicators are also changing. CryptoQuant's Bull Score Index dropped from 80 to 60 on August 10, signaling reduced investor buying willingness. Decreased stablecoin inflows also suggest limited new funds entering the crypto market. Consequently, while Bitcoin's upward trend remains valid, short-term momentum is waning, and market leadership is clearly shifting from institutions to individuals. These changes are expected to be crucial in determining future price directions.