The Bitcoin market is back in the spotlight: data shows that the share of long-term holders of $BTC has decreased from 60% to 50%. This means that investors who have been holding coins for several years have started selling, locking in profits at current levels of about $100,000.
Why is this happening?
1. Profit taking on peaks
Selling assets at levels around $100,000 is a normal strategy for long—term investors. They tend to lock in some of the revenue, especially if they bought #Bitcoin at significantly lower levels.
2. The market is close to overheating
Many investors consider current prices to be a temporary peak before a correction. Instead of risking the accumulated profits, they prefer to sell on an uptrend.
3. Institutional interest
An increase in the activity of institutional investors may also encourage retail investors to sell. Large players can buy BTC, creating the feeling that the market structure is changing.
Stability of 7+ year holders
Interestingly, the owners who have been holding Bitcoin for more than 7 years have not yet shown any activity for sale. This indicates strong confidence in the long-term value of BTC. They can expect even higher levels in the future, or they just stick to the "keep it no matter what" strategy.
What to expect next?
1. Short-term volatility
Sales of long-term holders can lead to lower prices in the short term. However, this does not necessarily signal the end of the bullish cycle.
2. The market is under the control of institutions
Reducing the share of retail long-term investors may strengthen the dominance of institutional players in the market. This changes the dynamics of supply and demand, making the market less volatile, but more dependent on large capitals.
3. Potential for accumulation
The corrections caused by sales open up opportunities for new investors or those who want to increase their positions in BTC at lower prices.
What should investors do?
1. Take profit rationally
If you bought BTC at early levels, the current prices are a good opportunity to lock in some of the profits.
2. Don't panic
Selling long—term holders is a normal market process. Panic sales can only worsen the situation and provide institutions with the opportunity to buy your coins at a reduced price.
3. Maintain a long-term strategy
For those who believe in the further growth of Bitcoin, it is important to remember that the market works in cycles. History shows that after periods of profit-taking, new growth phases usually occur.
Conclusion
A decrease in the share of long-term Bitcoin holders may indicate a temporary overheating of the market, but it also provides opportunities for new participants. Investors who fix profits do this rationally, especially if they bought at the bottom. However, the market continues to be strong due to the stability of long-term holders and growing institutional interest.
Take profits wisely, stay true to your strategy and don't sell your #BTC in a panic.
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