Long-term Bitcoin investors, known as “hodlers,” have sold around 200,000 BTC since the start of the year. This means they’ve been decreasing their holdings steadily over the past three months.
This kind of selling is pretty normal during times when Bitcoin’s value is rising a lot, as experienced investors tend to take some profits along the way.
Bitcoin Hodlers Reduce Holdings Amidst Market Fluctuations
According to reports from the firm, long-term Bitcoin investors have decreased their holdings by approximately 1.5% since the beginning of the year, which is a much smaller decrease compared to the last bull market when they reduced their holdings by about 15%.
Currently, Bitcoin is trading at around $51,000, having struggled to maintain levels above $52,000. Despite this, it has managed to stay above the important $50,000 threshold, showing signs of stability following a significant surge linked to the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States.
Recent data reveals that Bitcoin holdings on Coinbase, the largest cryptocurrency trading platform in the United States, have dropped to their lowest level since 2017. This decline coincides with BTC whales withdrawing funds into self-custody wallets.
Whales Withdraw Over $1 Billion in Bitcoin as Buying Activity Rises
According to data from CryptoQuant, large Bitcoin investors, known as whales, have withdrawn more than $1 billion worth of the cryptocurrency from the platform in recent weeks, moving over 18,000 BTC out of the exchange’s wallets.
This movement aligns with reports of increased buying activity by whales, who have accumulated over 100,000 BTC in just ten days, totaling over $5 billion. These findings come from cryptocurrency analyst Ali Martinez.
It’s uncertain whether the data includes Bitcoin addresses associated with spot Bitcoin ETFs. However, it highlights the mounting pressure on Bitcoin’s supply as the upcoming halving event in April approaches. This event will reduce the reward that miners receive for discovering blocks.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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