Long-term holders of bitcoin (BTC) appear to be ending their selling spree, a change in strategy that helped convert the psychological resistance price of $100,000 into a support level for the first time.
With one, short-lived exception, the largest cryptocurrency has held above $100,000 since January 17th. The past few days have been extremely volatile due to the inauguration of President Donald Trump, which saw an increase in volatility.
Long-term holders, or investors who have held bitcoin for more than 155 days, have been among the biggest contributors to selling pressure in the market, according to CoinDesk research in December. They are considered “smart money” because they tend to buy when bitcoin prices are depressed and sell for strength, a pattern that has been observed over the past four months.
As of September, this cohort had 14.2 million BTC. It now holds 13.1 million BTC. While investors held back around the start of the year, sales have increased again in recent days as the rate rose, albeit at a reduced pace.
The trend to watch for is when they stop selling. This tends to mark a peak in the cycle, which has occurred in 2013, 2017, 2021 and 2024.
