In Q1 2026, Bitcoin's supply in long-term wallets has increased significantly, surpassing 4.37 million BTC as of April 7. This marks a substantial rise from approximately 2 million BTC held in early 2024, indicating a sustained trend of supply absorption by retail investors.
The Bitcoin network activity index has also shown notable growth, climbing to 3,600 from 3,320 on March 22. This is the highest level since December 2024 and signifies a transition into a "bull-phase" for the first time since April 2025, with increased transaction counts and network usage.
While long-term holdings are on the rise, inflows from centralized exchanges have diminished, averaging between 300,000 and 350,000 BTC recently, a stark contrast to the previous expansion phases that saw inflows of over 1.2 million BTC. This shift suggests a tightening of liquid supply and reduced short-term trading activity.
Additionally, the rate of active addresses has declined, posting a momentum of -0.25 on April 6, indicating decreased user participation in the Bitcoin network.