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The cryptocurrency market is witnessing a notable phase as Bitcoin maintains its stability, with recent data indicating a strong holding pattern among long-term investors. On Sunday, Bitcoin's price saw a slight increase to $37,722.93, while its market capitalization inched up to $737.55 billion, and the circulating supply remained at 19.55 million BTC.

A recent Glassnode report highlights that approximately 84% of Bitcoin's supply is now profitable, mirroring a similar situation from November of the previous year. Despite these profits, there has been no significant move by long-term holders to liquidate their assets. This behavior suggests a potential 'euphoria phase' as holding patterns exceed the historical average by a considerable margin.

The accumulation trends have shown remarkable strength, with recent rallies outperforming those earlier in the year and contributing to a nearly forty percent price increase over the past month. Long-term holders are now controlling more Bitcoin than ever before, with holdings reaching an all-time high of about 14.9 million BTC. In contrast, the supply held by short-term holders has hit an all-time low of approximately 2.3 million BTC.

This disparity between long-term and short-term holder supply could indicate that substantial unrealized gains may be necessary before increased selling pressure occurs. The market trading has surged to year-to-date highs, with over 83% of Bitcoin now profitable. However, the modest unrealized profits have not yet compelled long-term holders to sell, despite strong accumulation signals and supply holdings that exceed historical averages by significant margins.

The current market conditions, coupled with the strategic holding by long-term investors, suggest a bullish sentiment that could potentially lead to an emerging bull market. As the crypto asset's trading volume decreased significantly by over half to $8,399,760,280 on Sunday, the market is closely watching these trends to gauge the future trajectory of Bitcoin's value.

https://www.investing.com/news/cryptocurrency-news/bitcoin-holds-steady-amid-signs-of-longterm-holder-confidence-93CH-3243806