Original title: Bitcoin $92K price correction triggered by long-term hodlers, not ETFs
Original author: Zoltan Vardai
Original source: https://cointelegraph.com/news/bitcoin-92-k-correction-triggered-long-term-hodlers-etfs
Translation: Tom, Mars Finance
On-chain data shows that the selling pressure on Bitcoin's price mainly comes from long-term holders, not ETF fund flows.
Despite initial speculation that institutional investors might be the main cause of this price drop, Bitcoin's recent price correction is actually attributed to long-term holders, not institutional investors.
According to Cointelegraph data, as of November 26 at 8:52 AM UTC, Bitcoin's price has fallen over 5.6% in the past 24 hours, trading at $92,774.
BTC/USD, 1-month price chart. Source: Cointelegraph
However, according to Bloomberg senior ETF analyst Eric Balchunas, it is not institutional investors or exchange-traded funds (ETFs) that triggered the drop in Bitcoin's price. In a post on X (formerly Twitter) on November 25, he pointed out that on-chain data shows selling pressure mainly comes from long-term holders, also known as 'hodlers'.
Analysts wrote: 'I see many members of the cryptocurrency community confused and frustrated as to why Michael Saylor bought $5 billion worth of Bitcoin but the price did not rise — this is the same question I sometimes hear regarding large ETF fund flows. This is what the data shows: 'The call is coming from inside the house,' which refers to the behavior of long-term holders.'
This correction occurred shortly after Bitcoin created its largest single-month candlestick in history, with Bitcoin's price first surpassing $99,000 on November 22. Some analysts still expect Bitcoin to break the historic high of $100,000 by the end of this month.
Data shows: Long-term holders triggered a Bitcoin correction to $92,000.
On-chain data shows that ETF fund flows are not the main factor behind Bitcoin selling pressure.
Additionally, according to cryptocurrency trader and technical analyst Kyle du Plessis's post on X platform on November 24, US spot ETFs absorbed most of the selling pressure from long-term holders:
“Long-term Bitcoin holders sold 128,000 BTC, but US spot ETFs absorbed 90% of the selling pressure. Strong institutional demand drove Bitcoin's rise, bringing it closer to the $100,000 milestone.”
Bitcoin: Long-term holders and US spot ETF balance change chart. Source: Kyledoops
Given the growing leverage in the crypto market, this correction may help the sustainability of the current Bitcoin upward trend.
On November 12, Crypto.com co-founder and CEO Kris Marszalek warned that the crypto market needs to deleverage before Bitcoin breaks $100,000.
Bitcoin: Estimated leverage ratio across all exchanges. Source: CryptoQuant
This correction did not trigger immediate deleveraging. According to CryptoQuant data, the estimated leverage ratio for Bitcoin across all cryptocurrency exchanges is 0.24, the highest level since August 2023.
