Bitcoin’s recent surge toward $100,000 has sparked excitement, but some analysts are warning the party might be short-lived. Long-term Bitcoin holders have sold an eye-popping 827,783 BTC—worth $82.6 billion—over the past month, according to CryptoQuant. While retail demand remains strong, experts suggest the market might be approaching a “potential top.”
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Long-Term Holders Take Profits
The recent sell-off by wallets holding Bitcoin for over 155 days reflects a major shift in market dynamics. Michael Saylor’s MicroStrategy (MSTR) purchased 149,800 BTC, and Bitcoin ETFs saw inflows of 84,193 BTC during the same period, but these combined represent just 30% of what long-term holders offloaded. Maartuun, a contributor to CryptoQuant, described the situation as a game of “musical chairs,” urging traders to “be prepared when the music stops.”
Retail Demand Props Up Prices
Despite the sell pressure, Bitcoin has managed to hold steady, thanks to retail demand reaching yearly highs. Retail traders are increasingly active in futures markets, with Bitcoin Open Interest standing at $61.2 billion, per CoinGlass. However, Maartuun highlighted risks, including sell-side pressure and profit-taking by long-term holders sitting on average gains of 400%.
Liquidity Concerns Loom
Real Vision’s Jamie Coutts, according to CoinTelegraph, added that Bitcoin’s all-time highs come amid worsening liquidity conditions. In his view, if liquidity tightens further, “the rally, while euphoric, can only last for a limited time.” As traders revel in Bitcoin’s historic rise, caution might be the smartest play.
At the time of writing, Bitcoin is sitting at $99,589.10.
