Recent data indicates potential challenges in the Bitcoin market as major players, including miners and long-term holders, activate their holdings.
Miners Increasingly Cashing Out Bitcoin
Data from July indicates a significant rise in Bitcoin outflows from miner wallets. As sales increase, the pressure on prices could mount due to lower demand from buyers, leading to heightened volatility. CryptoQuant reports that the average BTC sent from miner wallets has increased, suggesting higher selling activity.
Activation of Whale Wallets
One of the most shocking events in July was the movement of 80,000 BTC from a wallet that hadn’t been touched in over 14 years. Historical data shows that substantial transfers from wallets often precede sharp price declines. On July 29, an additional 3,782 BTC was transferred, raising concerns about an impending sell-off. Moreover, three other whale wallets have moved a total of 10,606 BTC after years of inactivity.
Long-Term Holders Start Selling
Long-term holders of Bitcoin have recently become net sellers as prices hovered around the $120,000 mark. Data from CryptoQuant reveals that as of late July, long-term holders began selling more than they were accumulating, a situation reminiscent of earlier this year before Bitcoin dipped below $75,000.
Despite the observed pressure on Bitcoin, some analysts believe that a major crash is unlikely, noting strong liquidity and institutional demand may help stabilize prices in the coming weeks.
