Long-Term Holders Drive Recent Bitcoin Selling Pressure
Bitcoin's recent price decline coincides with significant profit-taking by long-term holders (LTHs). Since September 2024, these investors—defined as those holding BTC for over 155 days—have sold 549,119 BTC (3.85% of their holdings). This selling pressure contributed to Bitcoin’s 7.6% drop after nearly reaching $100,000 on November 22.
Key Insights:
- Record Profit-Taking: November 21 saw $10.5 billion in realized profits, the largest single-day volume in Bitcoin’s history.
- Market Correction: Bull markets often experience 20–30% pullbacks to reset leverage. The current drop aligns with this pattern.
- Historical Trends: LTH sell-offs diminish cycle-over-cycle (25.3% in 2017 → 3.85% in 2024).
Projected Selling: 163K BTC Remains
Analyzing past cycles suggests LTHs may sell an additional 163,031 BTC (1.19% of holdings), reducing their supply to 13.54 million BTC. This gradual decline reflects higher lows and highs in LTH supply over time.
👉 Why Long-Term Holder Behavior Matters for Bitcoin’s Price
FAQs
Q1: Who are long-term holders (LTHs)?
LTHs are investors holding BTC for >155 days. They typically buy during downturns and sell during price peaks.
Q2: How does LTH selling impact Bitcoin’s price?
Large-scale sales increase market supply, often leading to short-term price corrections.
Q3: Is the current sell-off unusual?
No. Similar sell-offs occurred in 2017 (-25.3%), 2021 (-13.4%), and early 2024 (-6.51%), with diminishing magnitudes.
Q4: What triggers LTH profit-taking?
Psychological price milestones (e.g., $100K) and macroeconomic events often spur selling.
Bottom Line
While LTH selling creates near-term volatility, Bitcoin’s structural demand from ETFs and institutional buyers helps stabilize the market. Historical data points to 163K BTC remaining in sell pressure before equilibrium resumes.
👉 How to Navigate Bitcoin Market Cycles Like a Pro
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