Long-Term Bitcoin Holders Have Disposed of 1 Million BTC Since September, Says Van Straten.

Bitcoin Faces Largest Discount to Its All-Time High Since U.S. Election

Bitcoin (BTC) is currently trading 13% below its all-time high of approximately $108,000, marking the largest discount since the 2016 U.S. presidential election. Over the past few months, Bitcoin has spent several periods 10% below its record high, a level some investors consider a market correction.

The primary selling pressure comes from long-term holders (LTHs), defined by Glassnode as investors who have held Bitcoin for at least 155 days. LTHs often sell into price rallies after accumulating Bitcoin during market dips.

Recent data from CoinDesk indicates that LTHs began reducing their holdings significantly around a week ago. Since then, their selling activity has increased, dropping their holdings from 14.2 million BTC in mid-September to 13.2 million BTC. On Thursday, LTHs offloaded nearly 70,000 BTC, marking the fourth-largest single-day sell-off of the year, according to Glassnode.

However, every seller has a buyer. In this case, short-term holders (STHs) have been actively accumulating Bitcoin, with roughly 1.3 million BTC added to their holdings during this time. This suggests they are buying from the LTHs and other sellers.

Recently, the trend has shifted, with LTHs looking to sell more Bitcoin than short-term traders are willing to buy, contributing to Bitcoin’s price decline to around $94,500.

Currently, there are 19.8 million BTC in circulation, with another 2.8 million BTC held on exchanges. The amount of Bitcoin on exchanges has been steadily decreasing, with around 200,000 BTC leaving exchanges in recent months.

Tracking the activities of LTHs, STHs, and Bitcoin’s circulating supply will be critical for understanding future price movements over the coming days.