Long-term Bitcoin holders, defined as those who have held their coins for at least 155 days, have recently shifted from being inactive to selling their holdings, which could signal a critical turning point in the ongoing bear market.
Engel notes that 26% of the Bitcoin sold in the last month came from investors who purchased it at prices above $90,000, indicating a capitulation among previously resilient top-buyers as Bitcoin approaches new cycle lows.
The cryptocurrency has faced downward pressure, currently trading significantly below its October peak of over $126,000, largely due to geopolitical uncertainties, particularly related to the U.S.-Iran conflict. Meanwhile, Bitcoin ETFs have experienced their longest streak of net outflows, with total assets dropping from $107.8 billion to $85 billion since mid-May.
Analysts highlight that ETF flows are crucial for Bitcoin's price movements, accounting for about 45% of weekly return variations. The current negative sentiment and lack of positive regulatory developments suggest that the divergence between Bitcoin and stock market performance may continue, potentially impacting investor interest in the cryptocurrency