In August 2023, there is a noted decline in profit-taking from Bitcoin's long-term holders, indicating a shift in market dynamics.
Analysis of Bitcoin Sales by Long-Term Holders
Data from on-chain analytics platform Glassnode shows that sales from long-term Bitcoin holders have sharply decreased after reaching a billion dollars a day in July, marking one of the most active selling periods in the cryptocurrency's history.
Market Structure Changes
According to Glassnode, the current selling dynamics are mostly driven by long-term holders who have owned Bitcoin since the 2020-2022 cycle. Unlike previous cycles where short-term investors dominated, this selling wave primarily comes from those investing for over three to five years, potentially paving the way for further price increases as the market shifts towards retail investors.
Current Bitcoin Price Dynamics
At the time of writing, Bitcoin's price is around $121,224, up 2.6% in the last 24 hours and 5.9% over the past week. However, compared to the strong gains in July, the price has only risen 1.9% in the last two weeks. This cooling narrative is further reinforced by the decline of CryptoQuant's Bull Score.
The situation in the Bitcoin market during August 2023 suggests a cooling in profit-taking from long-term holders, indicating a potential pivot in investment strategies and possible market stability in the upcoming months.
