Bitcoin, the primary crypto asset has retracted to $93,000 after surging as high as $99,000 a few days ago.
The drop represents the longest losing streak for the crypto asset since the Donald Trump rally began.
The new price of Bitcoin means market watchers and traders will have to wait for longer for Bitcoin to cross the proverbial $100,000 mark.
At the time of report, Bitcoin is still exchanging hands for $93,346 dropping by 5.0% in the last 24 hours.
The price action of Bitcoin as the primary crypto asset always has a ripple effect on other Altcoins. The total crypto market retraced by 3.8% in the last 24 hours.
Despite the current drop in Bitcoin price. Data shows that long-term Bitcoin holders are still in profit and cashing out.
Long-term Bitcoin holders take profit
During the recent bull run caused by Donald Trump’s election win, Bitcoin surpassed its all-time high several times leading to long-term holders of the crypto asset taking profit. The on-chain activity of these long-term holders increased the selling pressure driving it to its highest since April 2024. The selling activity led to an average of 25.6k BTC per day with investors doing the bulk of the selling.
The current market situation was captured by Glassnode which shared its findings with its X community.
“Things are getting heated! #Bitcoin long-term holders (LTHs) have come out in force, with selling pressure hitting -366K #BTC/month — the highest since April 2024. But who is actually selling? Glassnode Tweeted.
Bitcoin ETF’s absorbing selling pressure from long-term holders
The 12 spot Bitcoin ETFs have been absorbing the selling pressure created by long-term holders selling their BTC assets for profits. The Bitcoin ETF has witnessed an inflow of over $7 billion since the US elections bringing the Bitcoin ETFs to a $105 billion valuation.
- Senior ETF Analyst for Bloomberg Eric Balchunas explained why heavy inflows into spot Bitcoin ETFs and large investments in Bitcoin are not driving up the price and pushing it past the $100,000 mark.
- He explained that Long-term holders’ activities are responsible for this stall due to the amount of BTC they are selling.
“I see a lot of CT baffled/frustrated as to how Saylor can buy $5b of btc but the price doesn’t move up which is the same thing I hear sometimes about ETFs after big flows. Here’s data showing what I’ve long been saying: the call is coming from inside the house, it’s long-term holders.”
The US spot bitcoin ETF’s have been absorbing the selling pressure generated by long-term holders in the market.
What To Know
- The 12 Bitcoin ETFs launched in January this year are the first Exchange Traded Funds product for a crypto asset. The ETFs create the opportunity for institutional investors to bet on crypto price action without actually owning one. These ETFs are usually issued by financial asset managers like Blackrock and Fidelity.
- Ethereum ETFs were launched months later and have been underwhelming compared to the performance of Bitcoin ETFs.
