Analysts are interpreting the recent behavior of long-term Bitcoin (BTC) holders as a bullish signal for the cryptocurrency market. Despite traditionally viewing offloading of assets as bearish in stock markets, in the crypto space it indicates potential upward movement. Wallets that have held BTC for at least 155 days are continuing to sell their holdings, resulting in a drop of approximately 13 million BTC in long-term holder supply. Over 1 million BTC transferred during the recent price rise above $100,000, indicating robust demand. Although the pace of selling by these long-term holders has slowed, the sliding balance of BTC on exchanges—from over 3 million to 2.7 million BTC—suggests a potential supply crisis. However, much of this decline may be due to coins moving into ETF wallets, creating liquidity similar to actual coins. This supply dynamics shift could lead to upward price pressure as traditional investors absorb the volatility of long-term holders offloading their assets.

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