Bitcoin long-term holders are increasing sales amid shrinking buyer demand, signaling potential bearish pressure on prices. On-chain data reveals long-term holders selling more than 155 days’ worth of Bitcoin, but new inflows from buyers and institutions like ETFs remain weak, creating a supply-demand imbalance.
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Long-term holders ramp up profit-taking as Bitcoin nears highs, a typical bull market behavior.
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Demand has contracted since early October, failing to absorb increased selling pressure.
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Institutional sources like ETFs show negative growth, with Bitcoin’s 30-day demand in the red for over a month, per CryptoQuant metrics.
Bitcoin long-term holders selling surges as demand dries up, raising concerns for price stability. Explore on-chain insights and expert analysis on this market shift—stay informed to navigate crypto volatility effectively.
What Is Driving Bitcoin Long-Term Holders to Sell More Aggressively?
Bitcoin long-term holders, defined as those retaining coins for over 155 days, are accelerating sales based on recent on-chain analytics from CryptoQuant. This surge in selling reflects profit-taking during price peaks, a standard pattern in bull markets, but the lack of offsetting demand is amplifying concerns. As prices hover above $103,000 after a recent dip, this imbalance could test market resilience in the coming weeks.
Long-term Bitcoin holders into a low-demand market. Source: CryptoQuantWhy Is Bitcoin Demand Contracting Amid Rising Long-Term Holder Selling?
Demand for Bitcoin has shifted negative since early October, contrasting with growth seen from July to September, according to CryptoQuant’s apparent demand indicators. Julio Moreno, head of research at CryptoQuant, highlighted this in a recent post on X, noting that long-term holders’ increased selling—now at around 790,000 BTC over 30 days—overwhelms incoming capital. Short-term demand metrics have lingered in negative territory for approximately 30 days, indicating fewer new participants entering the market. The one-year demand, while still positive, is trending downward and risks crossing into decline if current patterns persist. This standoff reflects a delicate balance where supply from seasoned investors outpaces buyer interest, potentially leading to price consolidation. Institutional demand from ETFs has plunged into negative growth, and holdings by figures like Michael Saylor’s Strategy remain stagnant at zero growth, underscoring broader weakness in absorption capacity.
Bitcoin demand over the last 30 days. Source: CryptoQuantHistorical comparisons reveal a stark difference: In rallies from November to December 2024 and January to February 2025, long-term holder selling aligned with robust demand surges, propelling Bitcoin to all-time highs. Those “green” demand phases supported upward momentum, but the current “red” contraction post-October suggests a less favorable environment. The October 10 market event exacerbated selling without demand recovery, leaving prices vulnerable. Bitcoin’s price has fallen over 5% in the past week, from near $110,000 to above $103,000, as this dynamic unfolds.
Frequently Asked Questions
What Happens If Bitcoin Demand Continues to Shrink from Long-Term Holder Sales?
If Bitcoin demand keeps contracting amid ongoing long-term holder sales, prices may face further downward pressure, potentially entering a consolidation phase similar to past bull market mid-cycles. On-chain data from CryptoQuant indicates that without fresh inflows from institutions or retail, the supply overhang could push values lower, though yearly positive trends suggest underlying structural demand persists.
Is the Current Bitcoin Selling by Long-Term Holders a Sign of Market Peak?
The increased selling by Bitcoin long-term holders often signals profit-taking near peaks, but the key factor is demand response—right now, it’s weakening, which could indicate caution rather than an outright peak. As Julio Moreno from CryptoQuant explains, healthy markets absorb this selling with growing buyer interest; the absence here points to a temporary cooling that voice searches might query as a natural bull market adjustment.
Key Takeaways
- Profit-Taking Pattern: Long-term holders are offloading Bitcoin after holding over 155 days, a bullish cycle norm, but it’s hitting higher volumes now at around 790,000 BTC in 30 days.
- Demand Weakness Exposed: Short-term metrics show 30 days of negative demand, with ETFs in decline and institutional flatlines unable to counter the supply.
- Watch for Reversal Signals: Positive yearly demand offers hope; monitor for ETF inflows or buyer surges to spark recovery and avoid deeper corrections.
Conclusion
The surge in Bitcoin long-term holders selling, coupled with contracting demand as detailed by CryptoQuant, underscores a pivotal moment for the cryptocurrency’s trajectory. While profit-taking remains a healthy aspect of bull markets, the current inability of buyers to absorb supply raises questions about near-term stability, especially with ETF demand turning negative. Structural yearly positives in Bitcoin apparent demand indicate resilience, but sustained weakness could lead to consolidation. Investors should track on-chain metrics closely for signs of renewed institutional interest, positioning to capitalize on potential rebounds in this evolving landscape.
