Bitcoin Remains Above $100,000 Amid Selling by Long-Term Holders
Bitcoin remains above $100,000 amid a complex consolidation phase. Analysts suggest long-term holders are selling while corporate treasuries and institutions are buying.
Whales Selling to Wall Street
Charles Edwards of Capriole Investments noted that long-term holders have been offloading Bitcoin since the ETF launch in January 2024. Key points include:
- Long-term holders (LTHs) are dumping Bitcoin while treasury-oriented entities are increasing their positions.
- The number of holders with over six months of BTC has surged, consuming all BTC sold by LTHs over the past 1.5 years.
- This accumulation trend typically precedes price increases, though broader on-chain data indicates potential fragility.
Mauricio Di Bartolomeo from Ledn suggested that the selling and buying may reflect a generational shift towards traditional custody solutions. Edwards disagreed, stating that if this were true, similar trends would be seen across other aging cohorts.
ETF Impact on Price Dynamics
On-chain analyst TXMC explained that rising demand does not always correlate with price increases due to Bitcoin's fragmented market structure. Highlights include:
- Market orders can significantly impact prices depending on the exchange and timing.
- ETFs and institutional purchases often go through OTC desks, which do not affect order book prices directly.
- Current activity may indicate redistribution rather than net demand for Bitcoin.
The ability of corporate treasuries and ETF managers to absorb Bitcoin from early holders is uncertain. The consolidation period may lead to increased volatility, as historical patterns suggest.
As of the latest update, Bitcoin trades at $108,044.
