Bitcoin long-term holder inflation rate nears a critical threshold$BTC

Capriole Investments founder Charles Edwards said multiple onchain metrics suggest that Bitcoin’s failure to print new highs after two retests is a “sign of weakness.”

In his latest newsletter, Edwards explained that the Bitcoin long-term holder (LTH) inflation rate has increased steadily over the last two years.

According to Glassnode, the LTH market inflation rate measures annualized accumulation or distribution rates over and above daily issuance to miners. Higher values indicate that LTHs are adding to sell-side pressure as their Bitcoin holdings diminish.

At bull market tops, market inflation peaks above nominal inflation at the 2% threshold, “which typically marks a high likelihood of the cycle top being in,” says Edwards.