Bitcoin Price Analysis: BTC Long-Term Holders Sell-Off Surges 450% as Trump Policies Unsettle Markets

Bitcoin price faces volatility as long-term holders offload BTC amid inflation fears, Trump’s reserve policy, and ETF outflows.

Bitcoin (BTC) Consolidates Below $90K Amid Multiple Active Catalysts

Bitcoin price experienced volatile price action on Friday, bouncing within a 10% range from lows of $84,600 to $91,280 on the daily candle.

Bitcoin briefly touched $91,200 following former President Donald Trump’s announcement of a Bitcoin strategic reserve policy, signaling a shift toward institutional adoption. However, the market reaction remained muted as investors digested a key caveat—the reserve will be funded with BTC acquired from open markets. This tempered bullish sentiment, preventing a sustained rally.

At the same time, Bitcoin ETFs saw another $134 million in total outflows on Thursday, reinforcing bearish sentiment. BTC price failing  to breach the $92,000 resistance signals active selling pressure, despite broader institutional interest.

Derivative markets reflected bearish sentiment, with $382 million in long positions liquidated, accounting for 73% of total losses.

The sharp sell-off suggests that inflation concerns stemming from the latest Non-Farm Payrolls (NFP) report overshadowed optimism from Trump’s White House crypto summit. With traders reacting to macroeconomic uncertainty, BTC remains vulnerable to further downside risks over the weekend.

Trump’s Latest Policies Unsettled Bitcoin Long-Term Investors

Bitcoin long-term holders appear rattled amid conflicting market signals from President Donald Trump’s recent policy updates. On Thursday, Trump’s Crypto Czar, David Sack, confirmed an executive order mandating that expropriated BTC be added to the national strategic reserve.

Despite this ostensibly bullish development, Bitcoin price dropped 5%, falling below $85,000 on Friday. The decline was driven by concerns over hawkish readings in the U.S. NFP report, which signaled rising inflationary risks due to Trump’s recently imposed trade tariffs.

The market reaction suggests that macroeconomic uncertainty is outweighing optimism around Trump’s pro-crypto agenda.

Supporting this view, on-chain data indicates that Bitcoin’s recent downturn coincides with a significant spike in selling pressure from long-term investors. Santiment’s Age Consumed metric, which tracks the total number of coins moved multiplied by their dormancy period, has recorded persistent spikes since Trump announced tariffs on February 25.

As illustrated in the chart, Bitcoin Age Consumed surged to 29.4 million when the tariffs were first announced and has remained elevated. On Friday, as the Bureau of Labor Statistics released the latest NFP report, Age Consumed spiked again to 15.9 billion, marking a 450% increase from the 2.8 million recorded on February 6. This suggests that long-term investors are exiting positions amid growing macroeconomic uncertainty.

Bitcoin Near-Term Outlook

When long-held BTC floods the market, it increases short-term supply and heightens downside risks. This dynamic explains why Bitcoin has struggled to reclaim $92,000, despite Trump’s strategic reserve announcement fueling long-term optimism.

Given current market conditions, Bitcoin traders may continue prioritizing short-term profit-taking over extended holding periods until macroeconomic fears subside. If selling pressure from long-term holders persists, BTC risks retesting the $82,000 support level before a potential recovery attempt.

Bitcoin Price Forecast: BTC Eyes $92K as Volatility Persists

Bitcoin price forecast chart below show that BTC is consolidating near $88,866, with bullish momentum attempting to reclaim $90,000. The Donchian Channel indicates a mid-range setup, with the upper boundary at $99,475 acting as resistance. A decisive breakout above this level could trigger a surge toward $102,500. However, the lower boundary at $78,258 suggests downside risks remain, especially amid recent volatility spikes.

Volume analysis highlights a surge in buying pressure following BTC’s rebound from $84,667, reinforcing the bullish case. Yet, the declining bullish volume suggests waning momentum, which could prevent a clean break past $92,000. The Average Daily Range (ADR) at 1.25 signals heightened volatility, a key consideration for leveraged traders navigating the market.

Despite the bullish recovery, BTC remains susceptible to a retracement if selling pressure intensifies. The recent 7.81% price swing underscores ongoing uncertainty, and a rejection from current levels could drive BTC back toward $87,000.

The market remains in a critical phase, where leverage-driven liquidations could dictate near-term direction. A daily close above $91,200 would reinforce bullish strength, while failure to hold above $87,000 could expose Bitcoin to deeper corrections.