Bitcoin Momentum May Be Waning Amid Low New Investor Participation
Bitcoin is trading above $107,000 after hitting a new all-time high over $111,000. Despite a 3.9% drop from this peak, BTC has gained over 10% in the past month. Market focus is shifting from price to on-chain dynamics, particularly regarding holder behavior.
Bitcoin Long-Term Holders Selling, New Entrants Still Cautious
- On-chain analyst Avocado Onchain analyzed UTXO data to assess current investor trends.
- The post suggests that older coins are being sold while inflows of new investors remain low.
- A significant portion of BTC supply is held by those with positions over six months.
- The 6–12 month age band of holders is increasing, indicating mid- to long-term holding patterns.
- Historically, shrinking long-term holder percentages precede major price tops.
- The current percentage of UTXOs held for less than one month is below historical thresholds seen near previous market peaks.
- New investor participation is currently around 20%, lower than during earlier bull cycles.
- Without increased participation from new investors, momentum may falter.
Large Holders Accumulate as Retail Stays on Sidelines
- While retail inflows are lacking, large holders are accumulating BTC.
- Addresses holding between 1,000 and 10,000 BTC are rising, indicating growing confidence among large investors.
- This accumulation is often linked to institutional activity, which may provide price support.
- The market is currently in a transitional phase, with potential upside if broader participation increases.
