Since September, Long-Term Bitcoin Holders Have Sold 1 Million BTC, According to Van Straten.

Bitcoin Hits Largest Discount to Record High Since U.S. Election

Bitcoin (BTC) is currently trading 13% below its all-time high of approximately $108,000, marking its steepest discount since the U.S. election of November 2016. Since then, Bitcoin has often traded around 10% below its record price, a level some investors refer to as a correction.

The primary source of selling pressure comes from long-term holders (LTHs), defined by Glassnode as individuals who have held Bitcoin for at least 155 days. These holders typically sell when prices rise, after having accumulated Bitcoin during market downturns.

Recent data from CoinDesk shows that LTHs were already offloading a large portion of their BTC a week ago. Since then, their selling activity has picked up, reducing their holdings from roughly 14.2 million BTC in mid-September to about 13.2 million BTC. On Thursday alone, they sold nearly 70,000 BTC, marking the fourth-largest one-day sell-off of the year, according to Glassnode.

On the other hand, for every seller, there’s a buyer. In this case, short-term holders (STHs) have accumulated around 1.3 million BTC in the same period, suggesting they’ve been buying Bitcoin from LTHs and others.

In recent days, the trend has shifted, with LTHs increasing their selling activity, while short-term traders have shown less interest in buying. This imbalance has contributed to Bitcoin’s price decline to around $94,500.

There are currently 19.8 million Bitcoin in circulation, with an additional 2.8 million BTC held on exchanges. However, the amount of Bitcoin on exchanges has been steadily decreasing, with about 200,000 BTC leaving exchanges in the last few months.

Tracking the movements of LTHs, STHs, and Bitcoin’s circulating supply will be crucial in understanding future price fluctuations in the coming days.