Long-term holders have sold approximately 400,000 Bitcoin ($45B) in the past month.
\nThis sell-off is driven by spot markets and fading conviction, not high leverage.
\nBitcoin fell below the key $100,000 level for the first time since June.<\/p>\n
Bitcoin has once again slipped below the critical $100,000 mark, but the force driving this latest downturn is different and potentially more concerning for the market. <\/span><\/p>\n Unlike the leverage-fueled crash in October, this sell-off is being driven by a quieter, more sustained exodus: long-term holders are cashing out, creating a $45 billion supply glut that is testing the market\u2019s conviction.<\/span><\/p>\n The original cryptocurrency fell as much as 7.4% on Tuesday, marking a more than 20% decline from its record high a month ago. <\/span><\/p>\n While it has since staged a modest recovery, the nature of the selling pressure suggests a fundamental shift in market dynamics.<\/span><\/p>\n The key difference in this downturn is the source of the selling. <\/span><\/p>\n While October\u2019s crash was defined by a cascade of forced liquidations from overleveraged traders, the current slide is being led by a steady drumbeat of selling in the spot market.<\/span><\/p>\n According to Markus Thielen, head of 10x Research, long-time Bitcoin holders have offloaded approximately 400,000 Bitcoin over the past month\u2014an exodus valued at around $45 billion. <\/span><\/p>\n This sustained selling from seasoned investors is creating a market imbalance that new buyers are struggling to absorb.<\/span><\/p>\n This analysis is supported by on-chain data. <\/span><\/p>\n \u201cOver 319,000 Bitcoin has been reactivated in the past month, mainly from coins held for six to twelve months \u2014 suggesting significant profit-taking since mid-July,\u201d Vetle Lunde, head of research at K33, told Bloomberg.<\/span><\/p>\n With market leverage now relatively muted, attention has turned to the large, long-time holders who are choosing to sell. <\/span><\/p>\n Thielen told Bloomberg that \u201cmega whales\u201d\u2014entities holding between 1,000 and 10,000 Bitcoin\u2014began offloading large volumes earlier this year.<\/span><\/p>\n For a time, institutional players were able to absorb this supply, leading to choppy, sideways price action. <\/span><\/p>\n However, since the October crash, broader demand has faded, and the accumulation by smaller whales (holding 100 to 1,000 Bitcoin) has dropped sharply. <\/span><\/p>\n The result is a growing imbalance between sellers and buyers. \u201cThe whales are just not buying,\u201d Thielen said.<\/span><\/p>\n This sustained selling from long-term holders could have lasting implications. <\/span><\/p>\n Thielen warns that the current unwind could continue well into next spring, drawing parallels to the 2021\u20132022 bear market, where large holders sold over one million Bitcoin over the course of nearly a year.<\/span><\/p>\n \u201cIf this is a similar pace,\u201d he said, \u201cwe could see this situation going on for another six months.\u201d<\/span><\/p>\n While not predicting a catastrophic crash, Thielen sees room for further declines as the market consolidates. <\/span><\/p>\n \u201cI am not a believer in the cycle,\u201d Thielen said, \u201cbut I would assume that we sort of consolidate and potentially drift even a bit lower from here. $85,000 is my maximum downside target.\u201d<\/span><\/p>\n The post Bitcoin\u2019s new problem: it\u2019s not leverage, it\u2019s long-term holders cashing out<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Long-term holders have sold approximately 400,000 Bitcoin ($45B) in the past month. This sell-off is driven by spot markets and fading conviction, not high leverage. Bitcoin fell below the key $100,000 level for the first time since June. Bitcoin has once again slipped below the critical $100,000 mark, but the force driving this latest downturn […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-5372","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-bitcoin"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/5372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=5372"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/5372\/revisions"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=5372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=5372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=5372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}From forced liquidations to fading conviction<\/span><\/h2>\n
The whale problem: big buyers are disappearing<\/span><\/h2>\n
What comes next? A path to further declines<\/span><\/h2>\n