Bitcoin’s Bullish Drive Eases, Says Cathie Wood’s ARK, While Long-Term Investors Reach All-Time High Holdings

ARK Invest: Long-Term Bitcoin Holders Hit Record Highs as Market Momentum Slows

Long-term bitcoin holders are sitting on their largest share of supply in 15 years, even as new investor activity cools, according to ARK Invest’s latest report for June.

Bitcoin saw a modest 2.55% gain in June, but the rally stalled below May’s high of $112,000, leaving the market in a period of sideways consolidation, the report noted.

A standout finding from ARK’s analysis is that long-term holders now control roughly 74% of bitcoin’s circulating supply, a level unseen for over a decade. This signals strong conviction among seasoned investors, despite fewer new participants entering the market.

However, ARK flagged a decline in on-chain activity during the second quarter, with its Market-Value-to-Realized-Value (MVRV) momentum indicator pointing to reduced capital flows and waning enthusiasm among traders.

On the macroeconomic front, ARK highlighted continued strength in the U.S. dollar, as measured by the Federal Reserve’s Nominal Broad Trade Weighted Dollar Index. This resilience contradicts popular narratives of dollar debasement that have long fueled bullish arguments for bitcoin.

At the same time, inflation appears to be cooling, raising questions about bitcoin’s status as an inflation hedge. Yet ARK suggests that easing inflation could open the door to lower interest rates, potentially boosting risk-on assets like technology stocks and cryptocurrencies.

Meanwhile, the U.S. housing market is flashing warning signs. ARK’s data shows a growing gap between high homeowner price expectations and declining home sales—a mismatch that could hint at underlying stress in consumer sentiment and broader economic risks.