Cryptocurrency analyst James Van Straten noted Sunday that Bitcoin's (CRYPTO: BTC) supply held by long-term holders has reached a bottom and the accumulation period could potentially begin.

What Happened: Van Straten took to X to share his insights on Bitcoin's supply and market trends. He noted that the market has absorbed 1,098,490 BTCs and suggested that the long-term holder supply has likely reached its lowest point.

"Supply has now grown over the past week and should now rise from here, " Van Straten predicted.

Most analytics firms recognize long-term holders as addresses that have held Bitcoin for 155 days or more.

Van Straten reflected on past market trends, mentioning a significant drop in Bitcoin's value from $70,000 to $49,000 that occurred 155 days ago, coinciding with the Yen carry trade unwind. He pointed out that investors who bought Bitcoin at those subdued prices would have seen a 100% increase in their investments by now.

Why It Matters: Van Straten's observations come as Bitcoin's long-term holder balance rose by 0.06% in the last 24 hours, according to IntoTheBlock. Additionally, over $137 million worth of Bitcoin left exchanges, signaling a preference to HODL.

Long-term holders are frequently viewed as "diamond hands" and more experienced investors. This cohort tends to accumulate cheap coins during weak trends and distribute them amid bull market strength.

Price Action: At the time of writing, Bitcoin was exchanging hands at $98,917.76, up 0.79% in the last 24 hours, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.