Bitcoin's most entrenched investors are still cashing out — and the pressure is starting to show.
More than two months after the token hit a record high above $126,000, Bitcoin has fallen nearly 30% and is struggling to find support. One reason: its long-time holders haven’t stopped selling. New blockchain data shows that coins held for years are being divested at some of the fastest rates in recent memory, just as the market’s ability to absorb them is fading.
The Exodus of Long-Term Holders
This trend highlights a significant shift in investor behavior. Long-term holders, often seen as the backbone of Bitcoin's stability, are now liquidating their positions at an accelerated pace. This exodus is contributing to the ongoing price decline and creating headwinds for recovery.
Market Impact and Support Levels
With Bitcoin down nearly 30% from its peak, the market is grappling with weakened support. The selling pressure from these seasoned investors is exacerbating the downturn, making it harder for the cryptocurrency to find a solid footing. Blockchain data reveals that the rate of divestment is among the highest observed in recent years, signaling a potential change in market sentiment.
What This Means for Investors
The persistent selling by long-term holders could indicate a lack of confidence in the near-term prospects of Bitcoin. As these coins flood the market, the reduced absorption capacity suggests that demand may not be keeping up with supply. This scenario poses challenges for both short-term traders and long-term believers in the cryptocurrency's future.
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