Over the past month, the market has seen how long-term Bitcoin holders are selling their assets. This massive sell-off reached over $43 billion in BTC. The profit-taking coincides with a notable slowdown in institutional demand. However, analysts from CryptoQuant and other experts suggest this is not a sign of panic.
Data from the analysis firm CryptoQuant reveals precise figures. Long-term holders (LTHs) liquidated approximately 405,000 BTC in the last 30 days. This activity is not isolated. For example, an early Bitcoin address, known as 195DJ, sold 13,004 BTC in October alone. This included a movement of 1,200 BTC, valued at $132 million, to the Kraken exchange. Likewise, demand for institutional cryptocurrencies has decreased. Net purchases fell below the daily mining supply. This is happening for the first time in seven months.
The slowdown in demand is clearly reflected in exchange-traded funds (ETFs). The iShares Bitcoin Trust (IBIT) ETF recorded less than 600 BTC in weekly net inflows. This trend continued for three weeks. Julio Moreno, Head of Research at CryptoQuant, explained the situation. He noted that there is not enough new demand to absorb this supply at current prices. This imbalance is a key reason behind Bitcoin’s recent price decline.
Is this massive sell-off the end of the cycle or a strategic redistribution?
Despite the selling pressure, many analysts do not see this as a bearish signal. They interpret the situation as a strategic redistribution, typical of bull cycles. Analyst Credible Crypto suggests that “OGs” are transferring coins to traditional finance. These new institutional investors buy on behalf of retail clients. On the other hand, on-chain researcher Willy Woo reinforces this view. Woo observed that LTH supply naturally contracts in bull markets. LTHs (coins aged over 5 months) move to new investors or treasury companies.
Although long-term Bitcoin holders are selling, the analyst consensus is that it is a healthy rotation. Nonetheless, the asset has faced headwinds. Market data shows that the price of BTC has fallen over 6% in the past week. At the time of this writing, BTC is trading at $107,046. The market is watching to see if new demand can absorb the remaining supply.
