Bitcoin Long-Term Holders Easing Off On Sales—What’s Happening?
Bitcoin Long-Term Holders Slow Down on Sales Amid Market Volatility
Bitcoin experienced sharp price swings over the past week, falling from $116,000 to around $108,600. Despite the decline, on-chain data reveals a slowdown in Bitcoin long-term holders’ (LTH) selling activity—potentially signaling market stabilization and future accumulation.
Background: Shrinking Selling Pressure from Long-Term Holders
The recent downturn in Bitcoin’s price has sparked concerns of a possible bearish trend. However, on-chain analytics presented by Alphractal suggest that long-term holders may be retreating from the selling phase. Using the Coin Days Destroyed (CDD) Multiple—an indicator that tracks the movement of older coins in relation to historical averages—analysts are observing a marked decrease in long-term holder activity.
The CDD Multiple essentially measures the “age” of coins being transacted. A decline in this metric indicates a reduction in the number of aged coins moved, implying that LTHs are holding rather than selling their assets.
According to Alphractal, while some LTHs continue moving their coins, the overall pace of sales has greatly diminished compared to earlier in 2024. This suggests a cooling period in selling pressure from seasoned investors.
Market Impact: Hints of Accumulation and Stability
Currently, Bitcoin trading just above the recent low of $108,500, navigating a volatile market environment. The behavior of LTHs—opting to hold rather than liquidate—may be a crucial factor in reducing sell pressure and anchoring price levels.
“This decline in coin day destruction activity suggests that many experienced investors are choosing to hold their positions, waiting for stronger market moves,” analysts stated.
Historically, such slowing in LTH activity has preceded accumulation phases, where investor confidence contributes to price floor formation and potential for upward momentum.
Price Update: Bitcoin Holds Steady Around $109,630
At the time of writing, Bitcoin is trading at approximately $109,630, showing minimal change over the past 24 hours. Market observers suggest that ongoing LTH behavior, in conjunction with key support levels, may be laying the groundwork for Bitcoin’s next rally.
