The Next Frontier for Bitcoin Holders: Generating BTC-on-BTC Yield
In today’s crypto for advisors, Todd Bendell from Amphibian Capital breaks down bitcoin yield products as a strategy to grow bitcoin holdings beyond price appreciation. Then, Rich Rines, an initial Core DAO developer, provides guidance to Bitcoin developers in Ask an Expert. Exclusive event alert for financial advisors: Join CoinDesk for Wealth Management Day on May 15th at Consensus Toronto. Registered wealth advisors are provided with their own day of networking and learning where they will acquire timely and actionable information about digital assets. Approved advisors receive a complimentary 3-day Platinum Pass ($1,750 value) to Consensus. Apply today. – Sarah Morton You’re reading Crypto for Advisors, CoinDesk’s weekly newsletter that unpacks digital assets for financial advisors. Subscribe here to get it every Thursday. The Next Frontier for Bitcoin Holders: Generating BTC-on-BTC Yield Bitcoin was never meant to sit idle. For over a decade, bitcoin has served as a digital store of value, a hedge against monetary debasement and more recently, a core allocation in institutional portfolios. As the asset matures and infrastructure improves, long-term holders are asking a new question: How do I put my bitcoin to work — without leaving the Bitcoin ecosystem? The answer lies in a growing but underexplored category of strategies: BTC-on-BTC yield. Let’s be clear: this isn’t about lending your BTC on unregulated platforms or chasing high annual percentage yields (APYs) à la BlockFi. That playbook collapsed under the weight of counterparty risk and opacity. What’s emerged over the last two years is a more institutional alternative — diversified, risk-managed access to systematic arbitrage and quantitative strategies, all denominated in bitcoin. Why BTC-native yield matters For most assets, it’s a given that money should work for you. We don’t keep dollars under a mattress or tucked away on a thumb drive — we invest them. Yet in the bitcoin world, the dominant narrative has long been “hold and wait.” That mindset made sense when bitcoin was fighting for legitimacy. But in today’s environment — where BTC is being adopted by sovereign wealth funds and traded on major exchanges — long-term holders need better tools. BTC-on-BTC yield solves this. It aligns with the ethos of accumulating more BTC but does so through institutional-grade strategies that aim to generate returns in BTC, not just on BTC. That distinction matters. Cold storage isn’t a strategy There’s also a myth that simply holding bitcoin in cold storage is the safest option. The phrase “not your keys, not your coins” has become dogma — but it deserves a second look. In reality, cold storage comes with its own risks: human error, hardware failure, loss of keys and in many cases, an inability to generate any yield whatsoever. Meanwhile, professional custodians — regulated, insured and audited — are now standard infrastructure providers in digital asset management. For allocators managing material BTC positions, yield-generating custody isn’t a tradeoff. It’s an upgrade. How these strategies work Today’s BTC-native yield opportunities span a wide range — from delta-neutral basis trades and statistical arbitrage to DeFi yield farming and machine learning-driven quant execution — but all settled in BTC. Returns are calculated and distributed in kind. The objective is simple: accumulate more BTC over time, without needing to rely solely on price appreciation. By allocating across a diversified mix of strategies and managers, investors can pursue consistent BTC growth while mitigating single-strategy or single-manager risk. Why BTC-on BTC yield is timely Several forces are converging right now: Volatility has returned. Major liquidation events — like the $10 billion flush in February — create dislocations that sophisticated funds can capitalize on. Infrastructure is stronger than ever. Custody, execution and risk tools have matured significantly since the last cycle. Institutional interest is real. ETFs have opened the floodgates — but most capital is still under-allocated and under-deployed. In short, bitcoin is growing up. The question is whether the strategies around it will grow with it. Rethinking HODLing BTC-on-BTC yield and long-term holding aren’t mutually exclusive. Allocators can continue to hold core BTC positions while using active strategies to pursue steady accumulation. That requires moving beyond cold storage maxims and exploring yield strategies that reflect the sophistication of today’s markets. With proper risk controls, BTC-native yield offers a pragmatic path to accumulate more BTC without abandoning its core principles. The bottom line is that bitcoin doesn’t have to sit on the sidelines. It can move with the market — and grow with it. For allocators thinking in decades, BTC-on-BTC yield opens the door to a more productive bitcoin strategy — one that matches conviction with action. – Todd Bendell, Managing General Partner, Amphibian Capital Ask an Expert Q. What’s the best way to align early developer incentives with long-term protocol value? A. The key is to reward real product-market fit and real users — not short-term speculation. That starts with building tight relationships and solving problems for real communities. From there, it’s about fostering an “eat what you kill” ecosystem, in which builders who ship products people actually use are rewarded with real economic upside — not just points, grants or temporary incentives. When developers are compensated based on the value they create for users, long-term alignment takes care of itself. Q. When just starting out in crypto, how can developers filter for signal over noise? A. Don’t just chase the hot thing — look for what will still matter in 5 to 10 years. That’s one of the key reasons Bitcoin remains a compelling foundation for builders. It has dedicated users, immense value and a clear product-market fit. Developers should focus on real usage and demand instead of short-term token price action. If you’re building something that keeps people engaged because it’s useful — not because it’s yield-farming season — you’re already filtering signal from noise. Q. What lessons from Bitcoin’s design philosophy are still underutilized? A. Bitcoin is dominant not because it does the most, but because it does one thing better than anyone else. Its product-market fit as digital gold is crypto’s most proven
Bitcoin Long-Term Holders Show Conviction: 63% Of Supply Hasn’t Moved In A Year
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español. Bitcoin is facing a crucial test as its price continues to swing without clear direction, navigating a tense and uncertain macroeconomic environment. While volatility persists, many analysts believe the worst phase of the correction may be over. After dropping over 30% from its all-time high, Bitcoin has managed to hold above key support levels, reinforcing short-term optimism. Related Reading However, global tensions—driven by escalating trade disputes and aggressive tariff policies from the US—are shaking financial markets. The specter of a global recession looms large, making investors cautious across both traditional and digital asset classes. Despite the noise, on-chain data from Glassnode adds a layer of optimism. According to their latest analysis, 63% of Bitcoin’s circulating supply has not moved in at least one year. This historic level of dormant supply highlights the growing conviction among long-term holders, who are weathering the current volatility without panic. Such behavior reinforces the belief that Bitcoin’s foundation remains solid, even as short-term traders exit the market. The strong hands are holding firm, and their resilience could lay the groundwork for the next major move—once macroeconomic conditions begin to stabilize. Bitcoin Holds Strong Amid Global Volatility: Rising Long-Term Conviction Massive price swings continue to shake both crypto and equities markets as volatility intensifies in response to rising global tensions and unresolved macroeconomic threats. Bitcoin, however, has held strong above the $81K level, suggesting that a potential recovery may be taking shape. The 90-day pause on U.S. tariffs—excluding China—offered temporary relief, but uncertainty still dominates investor sentiment. Ongoing trade conflicts between the United States and China threaten global economic stability, with many analysts warning of a potential recession if no resolution is reached. These fears are weighing heavily on risk assets across the board. Despite the challenging backdrop, Bitcoin’s performance suggests underlying resilience. Bulls are gradually regaining momentum after the recent sharp correction, and many market watchers believe the worst phase of the drawdown may be over. Adding to the optimism, top analyst Quinten Francois shared Glassnode data revealing that 63% of the Bitcoin supply has not moved in at least a year. This metric, often associated with strong long-term conviction, shows that the majority of Bitcoin holders are choosing to hold through volatility rather than sell into weakness. It reflects a maturing investor base with confidence in Bitcoin’s long-term value, even amid global uncertainty. Bitcoin Percent of Supply Last Active 1+ Years Ago | Source: Quinten Francois on X If current support levels continue to hold and macro conditions stabilize, Bitcoin may be on the verge of a sustained recovery. Related Reading BTC Price Stalls Below Key Resistance After Bullish Surge Bitcoin is currently trading at $82,600 following a strong surge that helped the asset recover from recent lows. The move has brought some short-term optimism to the market, especially as BTC managed to reclaim the $81K level—a key support zone that now needs to hold for bullish momentum to continue. BTC testing the 4-hour 200 MA | Source: BTCUSDT chart on TradingView However, significant resistance lies ahead. The price stopped near the 4-hour 200 Moving Average, currently sitting around $83,500. This technical level has consistently acted as a short-term barrier since Bitcoin lost the $100K mark, and bulls need a decisive breakout above it to confirm the beginning of a true reversal. If Bitcoin can break and hold above $83,500, the next immediate target is the $85K zone. Reclaiming that range could open the path for a push toward the $88K–$90K resistance band and potentially resume the longer-term uptrend. Related Reading On the flip side, failing to hold above $81K would signal weakness and likely invite renewed selling pressure. A breakdown below $80K would reinforce bearish sentiment, possibly triggering a fresh wave of panic selling and sending BTC back toward the $75K support zone. Bulls must act quickly to defend current levels and push higher. Featured image from Dall-E, chart from TradingView
Bitcoin Long-Term Holders Officially Enter Into Greed Territory, Is This Good Or Bad For Price?
Este artículo también está disponible en español. In a recent development, crypto analyst Ali Martinez revealed that Bitcoin long-term holders have officially entered greed territory. This could benefit the price in the short term, although the long-term consequences could be severe. The greed phase suggests that long-term Bitcoin holders are now excessively optimistic about BTC’s future trajectory. Bitcoin Long-Term Holders Officially Enter Into Greed Territory In an X post, Martinez stated that long-term Bitcoin holders, having experienced every phase of the market cycle, are now letting greed take over. In terms of market sentiment, these holders have moved from capitulation to hope, optimism, and then belief and are now in the greed phase. Related Reading This excessive optimism typically leads these investors to accumulate more BTC impulsively without considering rational analyses. In the short term, this greed phase is bullish for the Bitcoin price since this market sentiment could spark more buying pressure and drive the flagship crypto higher. BTC’s market dynamics in greed phase | Source: Ali Martinez on X This buying pressure for Bitcoin already looks to be evident as on-chain analytics platform Santiment revealed that the number of wallets holding 100 to 1,000 BTC has broken an all-time high (ATH), rising to 15,777 wallets. The platform also mentioned that Bitcoin whales peaked up steam this week with the US inauguration and a new BTC ATH as transactions exceeding $100,00 surged to their highest level in six weeks. This greed phase is good for the BTC price, as it could continue to send the flagship crypto to new highs. However, in the long term, this excessive optimism could put BTC in overbought territory, eventually sparking a massive wave of sell-offs that would send the Bitcoin price tumbling. This greed phase among Bitcoin long-term holders looks to be sparked by optimism around Donald Trump’s pro-crypto administration and the strategic BTC reserve especially. This still poses a risk for the Bitcoin price since the flagship crypto could be trading well above its actual value if the BTC reserve isn’t eventually created. What Needs To Happen For BTC To Stay Bullish In another X post, Ali Martinez warned that the Bitcoin price needs to stay above $97,530 to remain bullish. According to him, this price level is the key support level to watch for BTC, as holding above it is crucial to maintaining the current bullish momentum. Bitcoin is currently consolidating around this range after hitting a new ATH of $109,000 earlier this week. Related Reading Meanwhile, crypto analyst Crypto Rover highlighted the $102,000 support area as the most important for the BTC price right now. His accompanying chart showed that the flagship crypto could drop to as low as $98,000 if it drops below this support level. At the time of writing, the Bitcoin price is trading at around $104,900, up over 2% in the last 24 hours, according to data from CoinMarketCap. BTC trading at $105,375 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Unsplash, chart from Tradingview.com Source link