Bitcoin is under pressure again and is approaching the crucial $100,000 level. The decline has shaken confidence across the market, especially since traders had expected firmness. Over the past month, long-term holders have sold over 400,000 BTC. This is one of the largest waves of sales in network history.
They are not short-term traders. These are wallets that have held Bitcoin for many years, some from the earliest days. Their selling caused fear and uncertainty in the market.
Ethereum and other altcoins are also falling. Selling pressure has dried up liquidity, making traders cautious and reducing risk appetite overall. Many investors who bought near the recent highs are now underwater.
What is the reason behind the crypto sell-off?
On-chain data shows that old Bitcoin wallets containing coins that have been dormant for years are suddenly becoming active. This suggests that Bitcoin early adopters and miners are profiting and reducing their holdings.
Historically, these early holders had limited liquidity and were unable to sell in large quantities without crashing the price. But the market has changed. Spot Bitcoin ETFs, inflows into institutional investors, and corporate treasuries holding Bitcoin have allowed the market to absorb large sell-offs without causing a massive sell-off.
Thanks to this increased liquidity, early investors are now gradually and strategically distributing their holdings.
Analysts see this as a “transition period”
Macro investor Jordi Visser describes this stage as Bitcoin’s “IPO moment” rather than a market failure. In traditional finance, early investors reduce their exposure as the company matures and institutional capital intervenes. The same thing seems to be happening with Bitcoin today. Unlike previous cycles, selling from large holders no longer causes prices to collapse.
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Instead, Bitcoin is consolidating sideways in what appears to be an extended stabilization phase. Visser believes this signals a shift from early adopters to global capital, with ETFs, corporations, and even sovereign wealth funds beginning to accumulate Bitcoin as a long-term asset.
Why this could be bullish in the long run
Despite all this selling, Bitcoin is still trading above $100,000, an amazing feat considering the amount of supply released into the market. Analysts suggest this shows the maturity of the market.
Technically speaking, Bitcoin price is currently compressed into one of the narrowest volatility ranges in nearly two years. Historically, periods of low volatility like this often precede big moves. Additionally, global liquidity is on the rise again, which has historically benefited Bitcoin. This suggests that the current selling pressure may be temporary.
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FAQ
Bitcoin prices have fallen as long-term holders sell in large numbers, leading to profit-taking and short-term anxiety among retail investors.
Old wallets and early adopters of Bitcoin are cashing in their profits, in one of the biggest waves of long-term holders selling to date.
Institutional demand and ETF inflows have allowed the market to absorb large amounts of selling without causing large price crashes.
yes. Sustaining above $100,000 despite heavy selling is a sign of market strength, and low volatility often precedes big bullish moves.
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