Bitcoin (BTC), the leading cryptocurrency, has experienced a significant price decline, dropping 13% from its all-time high of $108,000. This downturn mirrors past market corrections, notably the one observed in 2016 following Donald Trump’s election victory. Long-term holders of Bitcoin are reportedly driving this selling trend, contributing to the recent volatility in the market.
What Are Long-Term Holders Doing?
Recent insights from Glassnode reveal that long-term holders (LTHs) of Bitcoin, defined as those who have retained their assets for at least 155 days, are taking advantage of the price surge by selling off portions of their holdings. Data shows that LTHs peaked at around 14.2 million BTC in mid-September, but this figure has since decreased to 13.2 million BTC. Last Thursday marked the fourth-largest selling day of the year, with LTHs offloading 70,000 BTC.
Is the Market Balance in Jeopardy?
The current circulating supply of Bitcoin stands at 19.8 million BTC, with 2.8 million BTC held on exchanges, but this situation is dynamic. Recent trends indicate a withdrawal of 200,000 BTC from exchanges over recent months, suggesting a shift in market behavior. Experts believe the actions of both long-term and short-term holders will be pivotal in shaping Bitcoin’s future price trajectory.
- The price drop is largely due to significant selling by long-term holders.
- LTHs have reduced their holdings from 14.2 million to 13.2 million BTC.
- Recent massive sell-offs indicate market volatility and uncertainty.
- Withdrawals from exchanges suggest changing dynamics in holder behavior.
The ongoing market fluctuations highlight the evolving landscape of Bitcoin trading, driven primarily by the decisions of its long-term holders. As these trends continue, analysts will be keenly observing the market’s direction and the potential for future price recovery.
