Bitcoin is currently experiencing a significant phase where long-term holders (LTHs) are gradually selling their coins. However, the market seems to be absorbing this supply without any signs of distress. This resilience indicates an underlying strength, which may pave the way for a bullish breakthrough. A notable factor in this scenario is MicroStrategy’s aggressive accumulation, which now accounts for 3% of Bitcoin’s total supply.
The growing institutional interest may serve as a catalyst for Bitcoin’s next significant movement. MicroStrategy, under its rebranded name Strategy, recently purchased an additional 4,980 BTC, bringing its total holdings to 597,325 bitcoins. This impressive amount represents roughly 3% of Bitcoin’s circulating supply. The company has adopted a pro-cyclical accumulation strategy over the past two years, increasingly aligning its largest purchases with bullish market sentiment.
Although some critics have raised concerns about centralization risks due to this heavy concentration, many view it as a strong indicator of institutional confidence in Bitcoin. Looking ahead, July historically stands out as one of Bitcoin’s strongest months, yielding a median return of 8.9% and showing positive closes in eight of the last ten years. This trend aligns with two significant bullish factors: first, LTHs are transferring their coins into the hands of more stable holders, and second, there is increasing institutional demand that is tightening the available supply. If this trend of absorption continues, a decisive breakout may soon occur.
Given July’s strong historical performance and the current structural support, the market may be in for unexpected developments, even for bullish investors.