YEREVAN (CoinChapter.com) — Bitcoin long-term holders are reducing their balances as the cryptocurrency nears the $100,000 level. At $84,000, the average profit for these holders reached 350%, encouraging significant sell-offs.
Bitcoin Long-Term Holder Behavior. Source: AxelAdlerJrBitcoin Long-Term Holders Reduce Balances
Recent data highlights a decline in Bitcoin long-term holders’ balances. Wallets holding Bitcoin for more than 155 days now control 12.45 million BTC, the lowest since July 2022. This represents a 10% reduction in holdings during the current market cycle.
Similar trends were observed in earlier cycles. In 2021, long-term balances decreased by 15%, while in 2017, the decline was 26%. Many holders appear to be selling to secure profits, while others shift their assets to cold wallets or exchanges.
Bitcoin Long-Term Holder Balances Decline. Source: IntoTheBlockBitcoin Network Activity Shows Decline
Bitcoin network activity has also slowed, reflecting reduced engagement. New Bitcoin addresses dropped by 5.94% over the past week, while active addresses—representing daily transactions—declined by 1.25%, according to IntoTheBlock.
Moreover, the number of zero-balance addresses fell by 10.5%, suggesting that fewer new participants are entering the market. This decline comes as Bitcoin struggles near key resistance levels, highlighting reduced user activity.
Bitcoin Address Activity Trends. Source: IntoTheBlockU.S. Government Transfers $1.92 Billion in Bitcoin
On Monday, the U.S. government transferred 19,800 BTC to a Coinbase Prime wallet, valued at $1.92 billion. This marks the first significant transfer from government-linked wallets in four months.
While some speculate about potential sales, analysts attribute the move to custody operations. Earlier this year, the U.S. Marshals Service selected Coinbase Prime to manage seized Bitcoin-related assets.
Short-Term Holders Accumulate Bitcoin
As long-term holders offload Bitcoin, short-term holders have been absorbing the supply. Data from Bitfinex shows that long-term holders redistributed 508,990 BTC since September, contributing to market liquidity.
Bitcoin Long/Short-Term Holder Threshold. Source: GlassnodeBitcoin’s upward momentum now depends on sustained demand from institutional investors and spot ETFs. Without sufficient demand, the increased supply from long-term holders could pressure prices. For now, short-term holders continue to accumulate, balancing market dynamics.
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