Long-term Bitcoin holders unload $2.4B as price weakness deepens

CoinDesk reports that Bitcoin's recent slide is drawing long-term holders back into the market on the sell side. Compass Point said investors who had largely stayed on the sidelines in recent weeks have flipped to net selling, dumping about $2.4 billion worth of bitcoin over the past two days and adding to supply-demand pressure. Compass Point defines long-term holders as wallets that have held coins for at least 155 days. The firm said these accounts were mostly quiet from February through April, but selling activity has picked up noticeably over the past few weeks. Analyst Ed Engel noted that 26% of bitcoin sold in the last 30 days came from buyers who entered above $90,000. Those higher-cost holders, who had been relatively steady earlier in the drawdown, are now exiting in size in what Engel described as panic-style selling. He added that concentrated selling from top-of-range buyers often appears in the later stages of a bear market, suggesting the intensified pressure could also signal the current downtrend is moving into its second half. ETF flows are also weighing on sentiment. SoSoValue data show spot Bitcoin ETFs posted net outflows for 11 consecutive trading days as of Monday, the longest streak on record. Citi analyst Alex Saunders said ETF flows remain a major driver of price action, explaining about 45% of weekly return volatility, and the persistent outflows point to subdued risk appetite. The report also highlighted broader market headwinds. Bitcoin has not reclaimed its prior peak above $126,000 set last October. Ongoing uncertainty around a potential U.S.-Iran conflict has pressured prices, even as U.S. equities have pushed to new highs, prompting investors to reassess bitcoin's role as both a safe-haven and a risk asset. Bitcoin is down 10% since the start of the week, and a sharp selloff on Monday set off a wave of long-position liquidations that compounded the decline. The report added that Strategy's sale of 32 bitcoin was not a primary driver of the move.