Long-Term Bitcoin Holders Sell 1 Million BTC, Impacting Market Dynamics
Recent data indicates that long-term Bitcoin holders have sold one million BTC since September, creating a supply-demand imbalance. Currently, Bitcoin trades at a 13% discount from its record high of around $108,000, with extensive selling from long-term holders contributing to the recent price decline to approximately $94,500.
Long-term Bitcoin holders have sold approximately one million BTC since September as the cryptocurrency trades at a 13% discount from its peak value. This decline is attributed to significant selling pressure from these holders, classified as those who have held their Bitcoin for over 155 days. Notably, this cohort has reduced their overall holdings from about 14.2 million BTC to roughly 13.2 million BTC since mid-September, highlighted by a notable one-day sell-off of almost 70,000 BTC. In contrast, short-term investors have begun accumulating Bitcoin, acquiring around 1.3 million BTC during the same period. However, the current market imbalance where long-term holders are selling and short-term holders are not buying in sufficient quantity is contributing to a drop in Bitcoin’s price, which currently rests around $94,500.
The current situation reflects a shift in Bitcoin’s market dynamics, especially post the U.S. election. As of now, Bitcoin sits 13% below its all-time high of approximately $108,000, a decrease seen as corrective by some investors. The selling actions from long-term holders, who typically sell during price rallies, suggest a cautious market outlook. With 19.8 million BTC actively circulating and around 2.8 million on exchanges, the movement of these assets becomes critical in analyzing upcoming price trends.
In summary, there is significant selling activity from long-term Bitcoin holders, evidenced by a reduction of their total holdings by about one million BTC since September. This trend has resulted in a notable price decline for Bitcoin, now trading at $94,500. The dynamics between long-term and short-term holders highlight an essential relationship that will likely influence Bitcoin’s future price movements as demand continues to fluctuate.
Original Source: www.coindesk.com
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