Bitcoin’s (BTC) recent price dip to $92,000 is being attributed to long-term holders (hodlers) rather than institutional investors or exchange-traded funds (ETFs), according to on-chain data. Despite this correction, strong institutional demand continues to fuel optimism for Bitcoin reaching the $100,000 milestone.
Bitcoin’s Price Correction: Long-Term Holders Take Center Stage
On November 26, Bitcoin (BTC) fell over 5.6% in 24 hours, trading at $92,774 as of 8:52 am UTC, following its record-breaking rise to $99,000 earlier in the week. Contrary to speculation, long-term Bitcoin (BTC) holders drove this correction, not the flow of funds into ETFs, according to Eric Balchunas, a senior ETF analyst at Bloomberg.
In a November 25 post on X, Balchunas commented:
“The call is coming from inside the house, it’s long-term hodlers.”
The decline came after Bitcoin posted its largest monthly candle in history, underscoring the growing activity among hodlers.
ETFs Absorb Hodler Selling Pressure
While hodlers sold 128,000 BTC, U.S. spot ETFs absorbed 90% of the selling pressure, showcasing strong institutional demand, according to crypto trader and technical analyst Kyle du Plessis.
“Strong institutional demand is fueling BTC’s rally, bringing it closer to the $100K milestone,” du Plessis noted.
Bitcoin (BTC): Long-Term Holders and ETF Balances
The chart below highlights the relationship between long-term holder selling and ETF balances during the recent market movement:
(Insert Chart: Long-term holders and ETF balances position change.)
Market Leverage Remains Elevated
The correction could support Bitcoin’s sustainability in the long run, especially given the high leverage levels in crypto markets. On November 12, Kris Marszalek, co-founder and CEO of Crypto.com, stated:
“The crypto market will need deleveraging before Bitcoin can breach $100,000.”
However, CryptoQuant data shows the estimated leverage ratio across all exchanges remains elevated at 0.24, a high last seen in August 2023.
What’s Next for Bitcoin?
Despite the pullback, analysts remain optimistic about Bitcoin (BTC) surpassing $100,000 in the near term. With ETFs absorbing substantial sell pressure and continued institutional interest, the path toward the next major milestone appears strong. However, the role of hodlers and leverage management will remain critical factors in shaping Bitcoin’s trajectory, according to Cointelegraph.
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