Bitcoin has recently dipped below the $100,000 mark, a move largely influenced by a surge of selling activity from long-term holders, often known as OG whales.
Increased Selling Activity
Julio Moreno, the Head of Research at CryptoQuant, pointed out this trend on X, emphasizing a marked increase in Bitcoin sales by those who have held their investments for over a decade. His findings show a notable uptick in the 30-day cumulative expenditure of Bitcoin held by these long-term investors. Essentially, this metric reflects the volume of Bitcoin being moved by those who have clung to their coins for ten years or more over the past month.
Visual data indicates that this trend has reached significant levels, with graphs illustrating that long-term holders have recently sold off a considerable portion of their Bitcoin as prices climbed in the last month.
Long-Term Holder Behavior
Interestingly, research indicates that the longer investors keep their Bitcoin, the less likely they are to sell. Once they’ve held their assets for 155 days, they’re categorized as long-term holders (LTHs). While these individuals have clearly shown a commitment to their Bitcoin, it’s still difficult to gauge how steadfast they are in their positions.
Additionally, it’s essential to consider that coins older than seven years are often deemed ‘lost.’ This generally means these assets are inaccessible due to forgotten wallets or misplaced keys, rather than being actively managed. While many of these coins are currently out of circulation, it’s possible that some might eventually resurface in the market.
Market Trends and Current Pricing
On the flip side, those who continue to sell may have quite a bit of confidence in their decisions. Having held onto their Bitcoin since as far back as 2014, these committed investors seem to feel satisfied enough with the prevailing $100,000 price to justify selling.
Just before the recent market downturn, the 30-day cumulative spending of Bitcoin held for over a decade was nearing a staggering $1 billion. This significant selling activity likely played a role in the recent price drop.
Currently, Bitcoin is trading around $97,700, reflecting a drop of more than 5% within the last 24 hours.
Source: Bitcoinist
