Bull markets typically peak when wealth is transferred from long-term investors to new price-sensitive investors. Currently, short-term holders control only 40% of Bitcoin network wealth (peaking at 50% in early 2025), significantly below the peaks of 70% to 90% from previous cycles. This difference likely arises from longer consolidation periods in the current cycle, a better understanding of Bitcoin by investors, and institutional participants with longer time horizons – collectively indicating an evolution in Bitcoin's investment dynamics across all investor classes.
