Summary Review: Bitcoin’s price surge close to $100,000 is prompting long-term holders to sell, with a net reduction of 245,000 BTC in their positions over the past month. Analysts caution that strong institutional buying, particularly through spot ETFs, is critical to balance the sell-off pressure and sustain the rally.
Bitcoin’s recent rally near $100,000 has triggered increased profit-taking among long-term holders (LTHs), according to data from on-chain analytics firm Glassnode. These holders, known for retaining their Bitcoin for over 155 days, are reducing their exposure at an accelerating rate, raising concerns about sustaining Bitcoin’s price breakout.
Long-Term Holders Ramp Up Sales
Data from Glassnode shows that the net Bitcoin position among LTHs has dropped by 245,000 BTC compared to 30 days prior, marking the largest reduction since April. This shift follows months of accumulation by these steadfast investors.
The sell-off comes as Bitcoin’s price continues to climb, enticing even the most committed holders to secure profits.
Institutional Buying Is Key
Crypto analyst Miles Deutscher noted that strong institutional buying pressure is essential to offset this wave of LTH selling. A major factor in this balance is the inflow of funds into U.S.-based spot Bitcoin exchange-traded funds (ETFs).
Deutscher highlighted the record-breaking ETF inflows, which totaled over $770 million on November 20 alone, according to data from UK-based investment firm Farside Investors. ETFs have also gained momentum with the recent launch of options trading.
Despite this, the current level of institutional investment may still fall short of fully countering the increasing sell-off from LTHs.
Bitcoin Hodlers in the Black
As Bitcoin’s price rises, most holders—both short- and long-term—are now sitting on significant unrealized gains. This profit-taking trend could influence Bitcoin’s supply dynamics and create additional selling pressure.
Looking Ahead
The combination of long-term holder activity and institutional inflows will likely play a pivotal role in determining whether Bitcoin can sustain its upward momentum. Analysts are closely monitoring these trends to assess the market’s ability to stabilize as it approaches the $100,000 milestone.
Summary Review: Bitcoin’s price surge close to $100,000 is prompting long-term holders to sell, with a net reduction of 245,000 BTC in their positions over the past month. Analysts caution that strong institutional buying, particularly through spot ETFs, is critical to balance the sell-off pressure and sustain the rally.
Disclaimer: Nothing in this article, or any content from Web30 News, should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves risks, and investors should be aware that capital is at risk and returns are never guaranteed. Please conduct thorough research and consult with a qualified financial advisor before making any investment decision.
