Bitcoin accumulation by long-term holders increased in the first quarter of 2026, even as prices declined and broader market sentiment weakened. According to a report from ARK Invest, holdings classified under “conviction buyers” rose from 2.13 million BTC to 3.60 million BTC, marking a 69% growth and the highest level since 2020.
The accumulation came during a period when Bitcoin fell roughly 22%, reflecting a divergence between price action and underlying ownership trends. While short-term traders reacted to volatility, a growing segment of buyers continued to increase exposure.
According to ARK’s Q1 2026 report, Bitcoin held by “conviction buyers” increased by 69% this quarter.
From 2.13M BTC to 3.60M BTC.
The highest level since 2020.
And this happened while the market was weak.
That is the part people should pay attention to.
Price was down… pic.twitter.com/fR1U8Xw0YF
— Mercek (@WorldOfMercek) April 30, 2026
Long-Term Holders Expand While Market Sentiment Weakens
The data shows approximately 1.47 million BTC moved into the hands of conviction buyers over the quarter. These holders are typically less sensitive to short-term price movements and tend to accumulate during periods of market stress.
This shift highlights a widening gap between reactive market participants and longer-term allocators. While volatility triggered selling pressure in some parts of the market, on-chain data suggests that stronger hands were absorbing supply rather than exiting positions.
At the same time, Bitcoin held on exchanges continued to decline, approaching levels last seen in 2019. Lower exchange balances are often interpreted as reduced immediate selling pressure, as more assets move into long-term storage.
Institutional Demand Outpaces New Supply
Institutional accumulation also remained active during the quarter. Strategy alone added roughly 85,000 BTC, continuing its aggressive acquisition strategy.
Meanwhile, Bitcoin’s daily issuance remains limited, with miners producing around 450 BTC per day. At various points during the quarter, institutional demand exceeded 1,000 BTC per day, surpassing new supply entering the market.
This imbalance between supply and demand is reshaping market structure, with a larger share of Bitcoin moving into long-term holdings. While short-term price movements remain influenced by macro conditions and liquidity shifts, underlying accumulation trends point to tightening available supply across the market.
Bitcoin is showing short-term weakness, struggling to stay above $75K–$77K and facing possible downside toward $73.5K–$68K. The drop is driven by heavy profit-taking, over $752M in long liquidations, weakening technical indicators, and falling sentiment (extreme fear).
Resistance near $77K–$78K is holding, while selling pressure from long-term holders is adding to the bearish outlook. Bitcoin’s price action reflects this backdrop with an advance supported by regulated investment vehicles rather than retail hype.
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