Bitcoin Sell-Off Driven by Mid-Cycle Holders

Bitcoin's recent downturn is primarily attributed to mid-cycle holders according to asset management firm VanEck. These holders, defined as those who have moved their coins within the last five years, are responsible for the majority of the selling pressure, while long-term holders, or 'whales,' have maintained their positions. Despite the overall bearish sentiment, these older bitcoin holders have been accumulating, with over 278,000 BTC transitioning into this group over the past two years, suggesting a sustained long-term conviction.BTC prices are nearing multi-month lows, recently recorded at around $86,696 after a 3.2% drop in 24 hours, marking a steep decline from its all-time high of $126,080 in October. Contributing factors to the market's decline include forced liquidations and the impact of offshore trading volatility. Analysts have also noted long-term selling by earlier adopters, alongside heightened trading activities in offshore derivatives markets as significant influences behind the current bearish trend.

Source 🔗