Bitcoin’s Long-Term Holder Supply Hits Record Surge Amid Institutional Adoption and Market Optimism

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The cryptocurrency market continues to demonstrate resilience and maturity, with recent developments underscoring growing institutional confidence and long-term investor conviction. Over the past 30 days, Bitcoin’s long-term holder supply increased by a record 800,000 BTC—a powerful signal of sustained "HODL" sentiment. This milestone coincides with major regulatory, custodial, and financial infrastructure advancements across global markets.

Record Bitcoin Accumulation by Long-Term Holders

Bitcoin’s long-term holders (LTHs), defined as entities holding BTC for at least six months, have added a rolling 30-day total of 800,000 BTC in June—marking the highest monthly accumulation in history. This is the seventh time such a surge has surpassed 750,000 BTC, reinforcing a bullish macro narrative driven by scarcity and confidence in Bitcoin’s long-term value proposition.

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This trend reflects strong conviction among investors who are increasingly treating Bitcoin as a digital store of value. With limited sell pressure from these long-term wallets, market volatility has softened despite macroeconomic uncertainty.

Institutional Momentum: ETF Inflows and New Investment Vehicles

The spot Bitcoin ETF ecosystem continues to gain traction. Last week alone, US-listed spot Bitcoin ETFs recorded $2.2 billion in net inflows**, up from $1.3 billion the previous week—marking 14 consecutive days of positive flows. Meanwhile, spot Ether ETFs saw a significant uptick, with $284 million in net inflows**, surpassing the prior week’s $38 million.

New filings further indicate institutional appetite:

These moves suggest that crypto-based investment products are becoming integral to mainstream portfolios.

Global Adoption and Regulatory Clarity

Regulatory progress worldwide is laying the groundwork for broader digital asset integration.

South Korea’s Won-Pegged Stablecoin Initiative

Eight South Korean banks are set to launch a Korean won-pegged stablecoin by late 2025 or early 2026. This move aims to counter the dominance of USD-pegged stablecoins and promote domestic digital currency adoption. The Bank of Korea has emphasized that regulated commercial banks should lead stablecoin issuance before extending access to non-banking institutions.

Japan and Hong Kong Advance Crypto Frameworks

Japan’s Financial Services Agency (FSA) proposed reclassifying cryptocurrencies as financial products under the Financial Instruments and Exchange Act (FIEA). If passed, this could pave the way for crypto ETFs and introduce a flat 20% capital gains tax, aligning it with stock taxation.

Hong Kong released a new policy statement supporting tokenised government bonds and real-world asset (RWA) tokenisation. It also clarified tax treatment for tokenised ETFs and encouraged secondary market development—solidifying its position as a pro-innovation financial hub.

US Regulatory and Housing Sector Developments

The US Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to consider including cryptocurrencies as assets in single-family mortgage risk assessments—a landmark step toward recognising crypto as part of personal wealth.

Additionally, Arizona’s House passed a bill allowing the state treasurer to establish a Bitcoin and Digital Assets Reserve Fund using seized crypto, signaling growing public-sector interest in holding digital assets on balance sheets.

Enhanced Security: Crypto.com Secures $120M Insurance Coverage

Crypto.com Custody Trust Company has secured $120 million in crime and specie insurance coverage for digital assets under custody, arranged through Aon. This coverage strengthens investor protection for one of North America’s key institutional custody solutions, reinforcing trust in secure asset management within regulated frameworks.

Such measures are critical as institutional participation grows and risk mitigation becomes paramount.

Market Performance and Volatility Trends

Last week, the overall crypto market index rose +9.76%, driven by optimism following geopolitical developments—including a US-brokered ceasefire between Israel and Iran. Aptos (APT) and Stacks (STX) led price and volume gains after Aptos Labs and Jump Crypto unveiled Shelby, a cloud-based Web3 storage network compatible with Ethereum, Solana, and other major blockchains.

Despite price gains, volatility dipped significantly:

Conversely, Arbitrum saw volatility spike +84% amid speculation of a potential partnership with Robinhood that could allow European users to trade US stocks via blockchain infrastructure.

All major categories saw market cap growth, with Layer-2 solutions leading the charge—highlighting continued scalability innovation across Ethereum’s ecosystem.

Emerging Technologies: zkEVM and Proof-of-Humanity

Humanity Protocol (H), now listed on the Crypto.com App, introduces a novel approach to identity verification on-chain. Built on Polygon’s Chain Development Kit (CDK), it’s a zkEVM-compatible blockchain featuring a Proof-of-Humanity (PoH) mechanism using palm recognition authenticated via zero-knowledge proofs. This ensures privacy while preventing Sybil attacks—offering a scalable solution for decentralized identity.

The native H token serves utility functions across transactions, governance, and ecosystem engagement.

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Macroeconomic Outlook

The US core Personal Consumption Expenditures (PCE) Price Index rose 0.2% MoM (2.7% YoY) in May—slightly above expectations. Federal Reserve Chair Powell reiterated that policymakers will remain on hold until the economic impact of tariffs becomes clearer. The CME FedWatch Tool currently shows an 18% probability of a July rate cut, up from 16% last week.

Stable monetary policy expectations continue to support risk assets, including cryptocurrencies.

Frequently Asked Questions

Q: What does an increase in Bitcoin long-term holders mean for the market?
A: A rising LTH supply indicates reduced selling pressure and stronger confidence in BTC’s future value—historically associated with bullish market phases.

Q: Why is insurance important for crypto custody?
A: Insurance protects against theft and operational risks, making custodial services more trustworthy for institutions and high-net-worth individuals.

Q: How do stablecoins pegged to local currencies like the won benefit adoption?
A: Local-currency stablecoins reduce foreign exchange barriers, increase accessibility, and support national monetary sovereignty in the digital economy.

Q: What impact do ETFs have on crypto markets?
A: ETFs provide regulated, accessible exposure to digital assets, attracting traditional investors and increasing liquidity without direct ownership complexities.

Q: Can zero-knowledge proofs enhance user privacy in blockchain applications?
A: Yes—ZK proofs allow verification of data (e.g., identity) without revealing the underlying information, balancing security, privacy, and compliance.

Q: Is declining volatility a sign of weakness in crypto markets?
A: Not necessarily. Lower volatility after sustained price increases often reflects maturation and reduced speculative trading—positive signs for long-term stability.

Final Thoughts: Building Toward Sustainable Growth

The confluence of record BTC accumulation, expanding financial products, regulatory clarity, and technological innovation paints a compelling picture of an evolving digital asset ecosystem. As institutions embrace crypto through ETFs, custody solutions, and balance sheet strategies, the foundation for sustainable growth strengthens.

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