Bitcoin Rally- Bitcoin ETFs See Record Inflows, But LTH Selling Persists
Bitcoin Rally– Bitcoin (BTC) has experienced a price surge, reaching nearly $100,000, yet a growing trend of selling among long-term holders (LTHs) poses a potential threat to its price breakout. Despite institutional buying fueling much of the recent BTC rally, onchain data suggests that LTHs have started to reduce their exposure to Bitcoin, which could lead to market pressure if not countered by fresh institutional demand.
Long-Term Holders Begin Selling Their Bitcoin
According to Glassnode, a leading onchain analytics firm, long-term holders (LTHs) have been trimming their Bitcoin holdings. LTHs are defined as wallets that have held Bitcoin for at least 155 days, generally representing the more committed and less speculative investors in the market. For much of the past six months, these holders accumulated Bitcoin. However, recent data shows that they have turned net sellers. On November 20, LTHs reduced their holdings by 245,000 BTC, marking the largest 30-day reduction since April 2024stitutional Buying Pressure Needed to Maintain Price Momentum
Crypto analyst Miles Deutscher has emphasized that the only way to counter the selling pressure from LTHs is through strong institutional buying. He pointed to U.S. spot Bitcoin exchange-traded funds (ETFs) as a key factor in maintaining upward momentum for Bitcoin. ETFs have seen record net inflows over the past month, and this week, the launch of options trading further boosted the market. According to Farside Investors, on November 20 alone, over $770 million flowed into Bitcoin ETFs .
Deut unless ETF flows remain strong, the ongoing sell-off by LTHs could significantly impact Bitcoin’s market price, potentially stalling its current rally. Despite the impressive institutional inflows, these efforts have so far struggled to counter the selling pressure from long-term holders .
Will Institutional Sustain Bitcoin’s Uptrend?
As Bitcoin approaches new all-time highs, the critical question is whether institutional investors will continue to drive the market. While the ETF inflows have been substantial, the growing trend of LTH selling adds a layer of uncertainty to the market’s future direction. If institutional demand continues to pour in, it could help mitigate this selling pressure, potentially pushing Bitcoin past the $100,000 mark and beyond. However, if this trend falters, the selling from LTHs may trigger a price correction.
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