Bitcoin’s institutional and ETF demand is outweighed by a sell-off from long-term holders.
On-chain data indicates a significant increase in selling activity among long-term Bitcoin holders, pushing their collective holdings to their lowest levels this year.
Renowned crypto analyst James Check, also known as Checkmate, highlighted the scale of this sell-off, explaining that the selling pressure from long-term holders is currently outpacing demand from institutional investors and Bitcoin ETFs. Despite growing interest from major players, the supply being offloaded remains far larger than what institutions can absorb.
According to data from CryptoQuant, long-term holders (LTHs)—defined as those who have held Bitcoin for over 155 days—have sold approximately 800,000 BTC in the past month. This marks one of the largest monthly reductions in LTH holdings seen this year, signaling a shift in supply dynamics within the market.
While institutions have stepped in to purchase substantial amounts of Bitcoin, the numbers reveal a clear gap. For instance:
- MicroStrategy acquired 149,880 BTC as part of its ongoing investment strategy.
- Bitcoin ETFs collectively added 84,193 BTC to their reserves.
This institutional accumulation, however, accounts for only 234,073 BTC, leaving an excess of 487,000 BTC to be absorbed by short-term holders, predominantly retail investors.
The current selling trend suggests that long-term holders are taking profits as Bitcoin approaches key price levels, potentially influenced by macroeconomic uncertainties or portfolio rebalancing. Meanwhile, retail investors and short-term holders are absorbing the oversupply, reflecting a shift in market participation. Analysts caution that this dynamic may add volatility to Bitcoin’s price movements in the coming weeks, especially if institutional demand fails to accelerate further.
Interestingly, dolphins—wallets holding between 100 and 500 BTC—have emerged as key buyers during this period, accumulating more than 350,000 BTC. This accumulation suggests that mid-sized investors are taking advantage of the selling pressure from long-term holders to increase their positions.
While institutional and ETF-driven demand has yet to trigger sharp price movements, it underscores a shift in the market’s participant profiles and their increasing influence on Bitcoin’s long-term trends.
This growing involvement of institutional players, such as ETFs and companies like MicroStrategy, highlights a maturation of the cryptocurrency market. Unlike retail-driven rallies of the past, institutional demand tends to be more gradual, steady, and strategic, reflecting a long-term investment mindset rather than short-term speculation.
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