As the price of Bitcoin approached $100,000, long-term holders started transitioning from accumulation to distribution. According to data on Long-Term Holder Supply Net Position Change, these holders began distributing their assets in late September 2024 after accumulating from May to August. Bitcoin LTH supply change (Source: Checkonchain)
The net position change revealed that long-term holders were net sellers from March to May, likely due to profit-taking.
The subsequent accumulation phase might have contributed to price increases by reducing market supply. The recent distribution suggests that holders are realizing profits as Bitcoin inches closer to the six-figure mark. Additionally, the Market Value to Realized Value (MVRV) Ratio has entered the euphoria zone, which is historically associated with overheated markets.
Periods when the MVRV Ratio exceeds the upper threshold often precede corrections, as seen in previous peaks. The current ratio indicates heightened speculative activity and potential risk for a price correction. Bitcoin Euphoria (Source: Checkonchain)
Bitcoin’s price surged to $98,200 on November 21 before retracing back down around $97,000 – bringing it within 3% of the $100,000 milestone.
The appreciation followed events such as the U.S election results in November 24 and the halving event in April. As of press time, Bitcoin struggles to retest the $100k milestone trading at approximately $93k.
Source
<p>The post Holders Cash Out as Bitcoin Nears $100k Milestone first appeared on CoinBuzzFeed.</p>
