Recent on-chain data reveals a significant surge in selling activity among long-term Bitcoin holders, whose collective holdings have dropped to their lowest levels this year.
Long-Term Bitcoin Holders Drive Selling Pressure
Renowned crypto analyst James Check, also known as Checkmate, has highlighted the magnitude of this trend. He noted that the selling pressure exerted by long-term holders far exceeds the demand from institutional players and Bitcoin exchange-traded funds (ETFs) such as MicroStrategy.
According to CryptoQuant, long-term holders (LTHs) — those who hold Bitcoin for over 155 days — have sold approximately 800,000 BTC in the past month.
Institutional Demand Falls Short of Long-Term Holder Sales
During this period, institutional entities like MicroStrategy added 149,880 BTC, while Bitcoin ETFs acquired 84,193 BTC. Despite these acquisitions, 487,000 BTC remained on the market, absorbed mainly by short-term holders and retail investors.
Dolphins Step in as Key Buyers
Interestingly, wallets holding between 100 and 500 BTC, known as “dolphins,” have become notable buyers during this sell-off. These wallets have accumulated over 350,000 BTC, signaling a significant shift in market dynamics.
Shifting Market Sentiment
While the demand from institutional investors and ETFs has not yet triggered sharp price increases, it underscores a changing profile of market participants and their growing influence on Bitcoin’s supply trends.
This evolving trend reflects a broader transformation in the Bitcoin market, driven by both retail investors and mid-sized holders adapting to current supply and demand dynamics
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