Bitcoin Surges 10% as Long-Term Holders Accumulate Amid Economic Uncertainty

Bitcoin has experienced a 10% surge over the past week, driven largely by accumulation from long-term holders and increased economic uncertainty in the United States. This rally marks a renewed sense of bullish momentum that is familiar to seasoned crypto traders.

Key On-Chain Indicators Fuel Optimism

One of the standout metrics is the rise in the Long-Term Holder (LTH) Realized Cap, which exceeded $18 billion for the first time since September 2024. This metric reflects the cost basis for holders who have owned Bitcoin for at least 155 days and is considered a bellwether for market sentiment. Historical data shows similar spikes have frequently preceded sustained rallies:

Past surges in LTH Realized Cap aligned with bullish trends
The last spike was followed by a 100% BTC price increase

Market Leverage Drops and Builds a Stronger Foundation

Simultaneously, Bitcoin’s open interest, which indicates the total outstanding futures and options contracts, saw a significant 28% decline from mid-December to early April. This kind of deleveraging often suggests that speculative excess is being flushed out of the market:

A 10% rebound in open interest was noted in the past 24 hours
Lower leverage may signal a healthier environment for sustained growth

Support Levels and Price Activity

Following a bounce from a low of $74,500, Bitcoin is now trading above $81,000. Key levels of support include:

$79,000: Approximately 40,000 BTC accumulated
$82,080: Roughly 51,000 BTC changed hands

These levels provide a cushion that could help prevent sharp pullbacks as Bitcoin hovers near critical price thresholds.

Macroeconomic Context Adds Complexity

Beyond crypto-specific metrics, broader economic indicators are influencing market sentiment. A 2.4% U.S. CPI reading—softer than expected—combined with a temporary halt on tariffs, has inspired cautious optimism. Nevertheless, analysts remain attuned to risks, particularly as Bitcoin encounters technical resistance zones.

What’s Next?

With long-term holders continuing to accumulate and leverage metrics showing signs of stabilization, many are watching closely to see if Bitcoin can build on this momentum. The interplay between growing investor confidence and fluctuating macroeconomic signals will be crucial in shaping the near-term outlook.

For a more detailed look at this topic, please visit the original article on Cointelegraph.