Long-term bitcoin holders return to the market as the price trails traditional assets

Long-term bitcoin holders sell at fastest pace since August as price lags broader markets

Long-term bitcoin holders are increasing sales at the quickest rate in five months as the cryptocurrency’s price trails broader financial assets.

Investors who have held bitcoin (BTC $83,148.69) for at least 155 days—typically considered the most conviction-driven participants—have offloaded roughly 143,000 BTC over the past 30 days, according to Glassnode data. This marks the fastest distribution among this cohort since August, when about 170,000 BTC was sold in a comparable 30-day window. That prior spike preceded a record high in October, reinforcing a pattern of long-term holders selling into strength.

Bitcoin’s underperformance relative to broader financial markets, including gold and silver trading near record highs, suggests stress in the crypto market. Analysts warn this divergence could signal further downside or an extended period of consolidation.

The October peak aligned with a widely cited theory that bitcoin follows a four-year cycle linked to its mining reward halving. The last 50% reduction occurred in April 2024, and historically, each cycle has seen a fourth-quarter peak followed by a prolonged drawdown and consolidation phase.

At the October top, nearly the entire long-term holder supply—around 15 million BTC—was in profit. Following a 36% decline through late November, there was a brief period of net accumulation from late December into early January, which temporarily eased selling pressure. Bitcoin briefly rallied to as high as $97,000, although roughly 2 million BTC are now held at a loss.

Despite the recent distribution, long-term holders still control about 14.5 million BTC, highlighting that selling from this group remains a significant potential headwind for the cryptocurrency’s price.