Long-term Bitcoin (BTC) holders sell $10 billion in May

Long-term Bitcoin (BTC) holders have sold approximately $10 billion worth of BTC in May 2024, according to data from blockchain analytics firm IntoTheBlock. This sell-off, amounting to around 160,000 BTC, marks a notable trend in long-term investor behavior.

This BTC sale shows a substantial change in market dynamics. Historically, long-term holders are known for their tendency to hold on to their assets through market fluctuations, contributing to the overall price stability of BTC. The decision of these holders to liquidate such a significant part of their holdings indicates a change of feeling.

However, June has seen a slowdown in the sell-off as long-term holders dumped another 40,000 BTC. While this is significantly lower than the volume sold in May, it still shows a continuing trend of liquidation among long-term investors.

Market impact and price movement.

The cumulative effect of these sales has contributed to the overall bearish sentiment in the market. It has had a pronounced impact on the price of Bitcoin. Over the past 30 days, the price of Bitcoin has fallen by 10.03%, reflecting the market’s reaction to increased selling pressure. From now on, Bitcoin is trade to $61,343, a notable decline from its previous levels.

Several factors could be influencing long-term holders to liquidate their BTC. Given Bitcoin’s substantial appreciation in recent years, long-term holders could be capitalizing on their gains. Many of these investors acquired BTC at significantly higher prices. low pricesand current levels offer an attractive opportunity for profits.

Broader economic trends such as interest rate changes, inflation concerns, and geopolitical events can also impact investor behavior. Long-term holders could be reallocating their portfolios in response to these macroeconomic changes. However, the sustained liquidation by long-term holders raises questions about the future trajectory of Bitcoin’s price.