What to Know:
- Bitcoin's price is currently 13% below its record high since the U.S. election.
- Long-term holders are -selling into market strength, but there isn't sufficient demand from short-term investors to balance the selling pressure.
Bitcoin (BTC) trades approximately $94,500, having experienced a drop of 13% since reaching its record high of around $108,000. This decline is linked to actions taken by long-term holders (LTHs), defined by Glassnode as those holding bitcoin for more than 155 days.
Recent data suggests that LTHs are selling rapidly; just last Thursday, they sold nearly 70,000 BTC, marking one of this year’s most substantial single-day sell-offs. In total, they've cut their holdings down to about 13.2 million BTC, down from 14.2 million in mid-September.
Conversely, short-term holders (STHs) have accumulated approximately 1.3 million BTC during this period, indicating their action to buy from LTHs. However, the recent momentum shows LTHs are interested in offloading more BTC than STHs are willing to purchase, exacerbating the price decline.
In total, 19.8 million BTC are circulating, with an additional 2.8 million BTC held on exchanges, which has seen a steady outflow with around 200,000 BTC withdrawn in recent months. Keeping tabs on these market segments will be crucial as they influence bitcoin’s price movements going forward.
