On November 26th, COINOTAG reported an intriguing development in the Bitcoin market, highlighted by data from Glassnode. As Bitcoin’s price saw an upward trend, all 14 million BTC held by long-term investors transitioned into profitability, inciting a notable uptick in selling activities. This shift led to a substantial reduction of over 200,000 BTC from wallets, particularly since the cryptocurrency’s recent all-time highs.
Long-term holders have begun to capitalize on their gains as the market sentiment improves and there is sufficient demand to absorb these sales. Exchange-Traded Funds (ETFs) have significantly mitigated the potential sell pressure, accounting for over 90% of the demand from long-term holders. However, with unrealized profits reaching unprecedented levels, there is a growing expectation that more of these long-term holders will continue to liquidate their assets, outpacing short-term ETF inflows.
Despite this sell-off, a considerable volume of Bitcoin remains in the possession of long-term holders, many of whom are likely adopting a wait-and-see approach for even higher price levels before further divesting into the market.