According to U.Today, long-term Bitcoin (BTC) holders sold off approximately $10 billion worth of BTC in May 2024, as per data from blockchain analytics firm IntoTheBlock. This significant sell-off, equivalent to around 160,000 BTC, indicates a shift in the behavior of long-term investors. Traditionally, these investors are known to hold onto their assets through market fluctuations, contributing to the overall stability of the BTC price. However, the decision to liquidate such a large portion of their holdings suggests a change in sentiment.
June witnessed a slowdown 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 continues the trend of liquidation among long-term investors. The cumulative effect of these sales has contributed to the overall bearish sentiment in the market, impacting Bitcoin's price significantly. Over the past 30 days, Bitcoin's price has dropped by 10.03%, reflecting the market's reaction to the increased selling pressure. Currently, 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.