Long-term holders of Bitcoin (BTC) appear to have ended 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 17. The past few days have been extremely volatile due to the inauguration of President Donald Trump, which saw a spike in volatility.
According to a CoinDesk study from December, long-term holders, or investors who have held bitcoin for more than 155 days, were among the largest contributors to selling pressure in the market. They are considered “smart money” because they tend to buy when bitcoin prices are depressed and sell when bitcoin prices rise sharply, a trend that has been observed over the past four months.
As of September, this cohort held 14.2 million BTC. He now holds 13.1 million BTC. While investors held back at the start of the year, sales have picked up in recent days as prices have risen, but at a reduced pace.
The trend to watch out for is where they stop selling. This tends to mark a peak in the cycle, which occurred in 2013, 2017, 2021 and 2024.
