BTC Sales Initiated by Long-Term Investors
Bitcoin’s recent market correction has led to a reduction in gains and a 19.86% increase. Despite a minor 0.37% uptick, doubts persist about BTC’s ability to sustain these gains as selling pressure persists.
Glassnode data indicates that long-term Bitcoin holders, excluding “Ultra Long-Term Holders” with over seven years of holding, have been selling off their positions.
The percentage of BTC held by long-term holders, defined as addresses holding BTC for over 180 days, has decreased by about 10%, shifting the market dynamics.
The evolving distribution of BTC ownership is reshaping the market landscape, as short-term holders gain more influence with the potential to drive the market in the near future.
The market currently remains in an early-to-mid-range phase until short-term holders constitute a significant majority, contrasting with the previous bull run where long-term holders dominated.
Diminishing Interest of Long-Term BTC Holders
Long-term Bitcoin holders are showing a faster decline in interest across various holding cohorts, particularly those who accumulated during the previous bear market phase.
Distinct cohorts, such as holders of 1-2, 2-3, and 3-5 years, have been downsizing their positions with potential further declines looming if selling pressure escalates.
The introduction of Bitcoin spot ETFs has added a new dimension to the market, as institutional investors, who accumulated BTC previously, are now beginning to offload their holdings.
Low BTC Demand and Pressure on Price
Hyblock data indicates a bid imbalance of 50% in the order book depth, signaling a sell-focused market with low demand and high supply, exerting downward pressure on Bitcoin’s price.
Data from CryptoQuant shows a rise in available BTC on exchanges, with an increase in Exchange Netflow, contributing to the expanding supply of BTC available for trading.