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Long-term Bitcoin (BTC) holders have sold off approximately $10 billion worth of BTC in May 2024, according to data from blockchain analytics firm IntoTheBlock. This massive sell-off, which amounts to around 160,000 BTC, marks a notable trend in the behavior of long-term investors.
This sale of BTC shows a substantial shift in market dynamics. Historically, long-term holders are known for their tendency to retain their assets through market fluctuations, contributing to the overall stability of the BTC price. The decision by these holders to liquidate such a significant portion of their holdings indicates a change in sentiment.
However, June has seen a deceleration in the sell-off, with long-term holders offloading an additional 40,000 BTC. Although this is significantly less than the volume sold in May, it still shows a continued trend of liquidation among long-term investors.
Market impact and price movement
The cumulative effect of these sales has contributed to the overall bearish sentiment on the market. It has had a pronounced impact on Bitcoin's price. Over the past 30 days, Bitcoin's price has slumped by 10.03%, reflecting the market's reaction to the increased selling pressure. As of now, Bitcoin is trading at $61,343, a noticeable decline from its previous levels.
Several factors could be influencing long-term holders to liquidate their BTC. Given Bitcoin's substantial appreciation over the past few years, long-term holders might be capitalizing on their gains. Many of these investors acquired BTC at significantly lower prices, and the current levels offer an attractive opportunity to realize profits.
Broader economic trends, such as interest rate changes, inflation concerns and geopolitical events, can also impact investor behavior. Long-term holders might be reallocating their portfolios in response to these macroeconomic shifts. However, the sustained sell-off by long-term holders raises questions about the future trajectory of the Bitcoin price.
Gamza Khanzadaev
Dan Burgin
Alex Dovbnya
Vladislav Sopov