In the year 2024, Bitcoin holders who have held onto their investments for the long term have been gradually selling off their holdings. Notably, there were significant sell-offs in the months of May and June. According to data from IntoTheBlock, May witnessed a sharp decline in long-term Bitcoin holdings, with around 160,000 BTC, equivalent to $10 billion, being sold.
Although the selling slowed down in June, an additional 40,000 BTC left the wallets of long-term holders. This selling activity has been closely tied to the fluctuations in Bitcoin’s market price.
A chart provided by IntoTheBlock reveals a consistent decrease in the holdings of long-term Bitcoin holders throughout the year 2024. Specifically, those who have held Bitcoin for over a year have been consistently selling off their holdings. This decline is represented by the blue line in the chart, indicating a continuous sell-off. May witnessed a significant and noticeable decline, confirming the reduction in holdings.
In June, the selling pace slowed down compared to May, but there was still a noticeable decline in long-term holdings. Despite the slowdown, the ongoing selling by long-term holders suggests that the market is still undergoing adjustments. The black line in the chart, which represents Bitcoin price fluctuations, shows a general downward trend, corresponding with the reduction in holdings by long-term investors.
Insights into Ownership Distribution
In February of this year, on-chain data revealed that a large number of Bitcoin addresses were holding BTC at a loss after collectively spending approximately $25 billion to enter the market at an average price of $52,125. Market analyst Lookonchain highlighted the potential for selling pressure in the crypto market, noting that 848,390 Bitcoin wallets had joined the market at this average purchase price. The data, sourced from market intelligence provider IntoTheBlock, highlighted the challenges faced by many investors.
Disclaimer: This article is intended for informational purposes only and should not be considered as financial advice. The views expressed in this article may include the author’s personal opinions and do not necessarily reflect the opinions of The Crypto Basic. Readers are strongly advised to conduct their own research before making any investment decisions. The Crypto Basic shall not be held responsible for any financial losses incurred.