The cryptocurrency market is currently grappling with a sell-off as long-term Bitcoin holders have liquidated over 728,000 Bitcoin (BTC) in the past 30 days, according to the CryptoQuant data.
At current prices, this equates to nearly $69 billion worth of Bitcoin.
“This marks the highest sell-off since April,” CryptoQuant wrote in its X post from Nov. 26.
Long-term holders have offloaded 728,000 #Bitcoin in the past 30 days.
This marks the highest sell-off since April. pic.twitter.com/oWqqgIUeSR
— CryptoQuant.com (@cryptoquant_com) November 26, 2024
A Sudden Shift
This change in sentiment from accumulation to liquidation is particularly noteworthy, as it comes on the heels of a significant buying spree in October, when large Bitcoin investors, known as whales, added nearly 250,000 BTC to their holdings.
The timing of this sell-off, coinciding with Bitcoin’s recent surge and attempts to reach a new all-time high of $100,000, has sparked speculation about the underlying motivations.
While the exact reasons for this sell-off remain unclear, several factors may be contributing to this trend.
First, the recent Bitcoin price rally may have incentivized long-term holders to take profits.
Second, concerns about potential macroeconomic headwinds may have prompted some investors to reduce their exposure.
Finally, some holders may be looking to diversify their portfolios by allocating funds to other assets or projects.
Bitcoin’s Strong Demand Absorbs Massive Sell-Off
However, while the massive sell-off of 728,000 BTC in a single month might initially appear alarming, a crypto analyst Yaroslav Krasko suggests another interpretation.
Krasko argues on its X post from Nov. 27 that the current buying volume significantly outweighs the selling volume. This strong demand, he claims, is capable of absorbing the sell-off without causing a significant price impact.
Krasko concludes that the recent sell-off, rather than being a bearish signal, underscores the resilience of the Bitcoin market. His perspective suggests that the market is strong enough to withstand such selling pressure.
Are the #Bitcoin whales losing faith? A massive sell-off of 728,000 $BTC in just one month might suggest so, but let’s look closer.
The reality is that buying volumes are far greater than selling #volumes, and these sales have had no real impact on the price. This shows the… pic.twitter.com/KuoyoZ1uyp
— Yaroslav Krasko | Crypto Trader (@YaroslavKraskoo) November 27, 2024
Macro Trends and Rising Bitcoin Adoption
The growing global money supply and a potential price reversal in the U.S. Dollar Index (DXY) may further continue Bitcoin’s 2025 rally, according to Jamie Coutts, Chief Crypto Analyst at Real Vision.
A #Bitcoin bid has overshadowed tightening liquidity over the past month. Yes, there is a lag between liquidity and Bitcoin, and therefore $BTC seems overstretched vs. global M2. My liquidity model, which I flagged 3 weeks back, suggested caution, especially with leverage.… https://t.co/FFX7NjmtOe pic.twitter.com/Amw8rBE03e
— Jamie Coutts CMT (@Jamie1Coutts) November 27, 2024
Additionally, Bitcoin is on the brink of a new milestone, nearing one million daily active addresses for the first time since 2019. This surge in user activity shows growing adoption and could further fuel the upward trend of the world’s first cryptocurrency.
Bitcoin’s long-term activity trend has decisively shifted, with on-chain activity seeing significant growth.
The number of daily active addresses is approaching 1 million, representing the first prolonged increase of this scale since 2021. pic.twitter.com/PheqxY52ej
— IntoTheBlock (@intotheblock) November 26, 2024
Bitcoin’s dominance, as measured by its share of the total crypto market cap, is currently around 58%, down slightly from a recent high of over 60%, according to TradingView data.
At the time of writing, Bitcoin was trading at $95,533, up 2.4% in the last 24 hours.
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