Bitcoin has slipped below the $100,000 mark for the first time since June, marking a fresh downturn driven by long-term holders cashing out rather than leveraged traders.
The world’s largest cryptocurrency dropped as much as 7.4% on Tuesday, extending losses to over 20% from its record high a month ago. By Wednesday morning in New York, Bitcoin had rebounded 1.7%, though derivatives traders were still betting on further declines.
Unlike October’s sharp collapse, which was triggered by heavy liquidations, the current selloff appears to stem from waning conviction among long-time investors, reported Bloomberg.
According to Markus Thielen, head of 10x Research, around 400,000 Bitcoins, worth nearly $45 billion, have been sold in the past month, creating instability in the market.
“Over 319,000 Bitcoin has been reactivated in the past month, mainly from coins held for six to twelve months — suggesting significant profit-taking since mid-July,” said Vetle Lunde, head of research at K33, as quoted by Bloomberg.
This time, the decline has been driven largely by steady spot selling, rather than the leveraged washouts that defined last month’s crash.
CoinGlass data showed about $2 billion worth of crypto positions were liquidated in the last 24 hours — far less than the $19 billion wiped out during October’s rout.
Meanwhile, open interest in Bitcoin futures remains muted, with traders buying put options targeting the $80,000 level.
Thielen noted that selling pressure is increasingly being fuelled by long-term holders reducing their exposure.
“We broke through some on-chain indicators — people are underwater, they need to close their positions,” he said. He added that “mega whales” — entities holding between 1,000 and 10,000 Bitcoin — began unloading earlier this year, while institutional demand has faded since the October 10 crash.
“The whales are just not buying,” Thielen remarked.
Accumulation among holders with 100 to 1,000 Bitcoin has dropped sharply, further weakening market resilience.
Thielen warned that the current downturn could persist well into next year.
Drawing parallels to the 2021–2022 bear market, when large investors offloaded more than one million Bitcoin over 12 months, he cautioned that the current phase “could see this situation going on for another six months.”
The world’s largest cryptocurrency dropped as much as 7.4% on Tuesday, extending losses to over 20% from its record high a month ago. By Wednesday morning in New York, Bitcoin had rebounded 1.7%, though derivatives traders were still betting on further declines.
Unlike October’s sharp collapse, which was triggered by heavy liquidations, the current selloff appears to stem from waning conviction among long-time investors, reported Bloomberg.
According to Markus Thielen, head of 10x Research, around 400,000 Bitcoins, worth nearly $45 billion, have been sold in the past month, creating instability in the market.
“Over 319,000 Bitcoin has been reactivated in the past month, mainly from coins held for six to twelve months — suggesting significant profit-taking since mid-July,” said Vetle Lunde, head of research at K33, as quoted by Bloomberg.
This time, the decline has been driven largely by steady spot selling, rather than the leveraged washouts that defined last month’s crash.
CoinGlass data showed about $2 billion worth of crypto positions were liquidated in the last 24 hours — far less than the $19 billion wiped out during October’s rout.
Meanwhile, open interest in Bitcoin futures remains muted, with traders buying put options targeting the $80,000 level.
Thielen noted that selling pressure is increasingly being fuelled by long-term holders reducing their exposure.
“We broke through some on-chain indicators — people are underwater, they need to close their positions,” he said. He added that “mega whales” — entities holding between 1,000 and 10,000 Bitcoin — began unloading earlier this year, while institutional demand has faded since the October 10 crash.
“The whales are just not buying,” Thielen remarked.
Accumulation among holders with 100 to 1,000 Bitcoin has dropped sharply, further weakening market resilience.
Thielen warned that the current downturn could persist well into next year.
Drawing parallels to the 2021–2022 bear market, when large investors offloaded more than one million Bitcoin over 12 months, he cautioned that the current phase “could see this situation going on for another six months.”
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