In a significant shift in bitcoin’s market structure the amount of supply held by “conviction buyers” has surged to nearly 4 million BTC, according to BitGo data cited by Bitfinex on Wednesday.
This indeed looks interesting. I've looked a bit into the article and the
Bitfinex post to see what these "conviction buyers" are.
Exact methodology is unclear, but this is the result of onchain analysis, where the coins in this category are owned by entities that:
- are not exchanges
- are not among the "inactive" Bitcoin owners (those sitting without moving for more than 10 years)
- rarely transact, and their transaction patterns aren't influenced by downward price movements
- (own interpretation of the chart) but it's possible they sell in upward movements.
About 5.6 million are "inactive" BTC, so those Bitcoins added to the 4 million "conviction buyers" are 9 million from the current 20 million who will not be easily dumped.
It's also interesting that in 2025 only about a million was held by conviction buyers. However, the 4 current million aren't the absolute record: it were about 4.5 million up to 5 million both in 2014/15 and 2020/21. On the other hand, these 4.5 million BTC were worth much less back then. So in terms of purchasing power we should be close to an ATH of "conviction buyers".
The only little downside is that StrategyBTC is counted among these "conviction buyers", and they alone make up for almost 25% of these.