Bitcoin (BTC) Price: Is Long-Term Holder Selloff A Blessing In Disguise?

David Pokima
April 4, 2024 Updated May 28, 2025
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Highlights

  • Long-term Bitcoin holders sell off assets this week.
  • Analysts say holders look to profit after the price hike.
  • These sell-offs might be a blessing at the end of the tunnel.

The cryptocurrency market showed signs of a rebound after a string of outflows with Bitcoin (BTC) recording several large-scale exits. On-chain data shows an increasing number of long-term Bitcoin holders moving assets following present market situations.

Analysts at crypto data analyst firm CryptoQuant point to a change in BTC supply rate from long-holders to see how these large investors view the present market. At the moment, this class of holders is selling their assets rapidly plunging the price of Bitcoin.

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Bitcoin Records High Liquidations 

Bitcoin notched significant gains last year following anticipation of a spot ETF in the United States. This occurred as a new investment window will allow traditional investors to increase their exposure to the market. This year the approval by the Securities and Exchange Commission on Jan 11 spiked the puberty of the asset above $72,000 tapping a new all-time high. 

However recent liquidations and macroeconomic factors have occasioned a price drop leading to weakened investor sentiment in the market. On both sides of the coin, analysts have commented on the impact and benefit of the sale of crypto assets long-term.

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Long-Term Holders Eye Profit

A major reason for the rapid sale of assets is to gain profits after a bullish run. Coming out of the 2022 bear market, BTC lost about 55% of its value. A rise above $70,000 is a wide margin for some holders seeking to make profits with the switch in the market. 

Long-term holders may be taking profits after a significant run-up in prices, similar to what occurred during the early stages of the 2021 bull market when Bitcoin surpassed its 2018 all-time high. Profit-taking is a common strategy among investors, especially after witnessing substantial gains in the value of their investments.” 

Digital asset commentators view the price drop as a good entry point ahead of bullish activities like the upcoming Bitcoin halving. A reduction in supply coupled with bullish activity will create a spike taking the asset to new highs. Long-term Bitcoin holders could rebalance their positions ahead of the halving leading to outflows. 

Increased demand can help the asset’s price in the long run while experts also view sales to re-invest accumulated profits at discounted prices. This can be seen as miners moved assets from Bitcoin reserves to centralized exchanges. 

Read Also: OneCoin Crypto Scam Co-Conspirator Bags 4-Year Jail Term 

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.