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After hitting a record high of $99,000 on November 22, the price of Bitcoin has dropped substantially, falling more than 5.6% to $92,774 as of November 26. Now, it is trading at $92K as long-term holders' ongoing selling pressure fulfils interest for a $100K run.
According to the weekly crypto report, LTHs released 507K Bitcoin between September and November. This group of coins has now spread a difficult 507K BTC since the September LTH supply peak. This large volume is less than the 934K BTC that traders spent during the last move that took place in the March 2024 ATH.
Reason Behind this Drop
Analysts point out that long-term holders' actions, not those of exchange-traded funds (ETFs) or institutional investors, are to blame for this fall.
Eric Balchunas, a senior ETF analyst at Bloomberg, noted:
"I see a lot of CT confused/frustrated as to how Saylor can buy $5 billion worth of Bitcoin, but the price doesn't move up - which is the same thing I sometimes hear about ETFs after big flows. This evidence supports my long-held belief that the call originates from within the home and is made by long-term holders.”
These results are confirmed by on-chain data, which reveals that long-term owners traded 128,000 BTC while U.S. spot ETFs took 90% of the selling demand.
LTH Spending Distribution
On average, 0.27% of the LTH stock is shared every day, with a higher distribution rate observed on just 177 trading days overall. This pattern points to a greater desire among long-term holders to engage in trades.
It shows that the present LTH spending distribution rate is higher than that observed at the March 2024 ATH. It indicated a more active distribution strategy as the market approaches the $100,000 valuation.
An all-time high has been reached, breaking a previous record established in March, and long-term holders are now realizing an amazing $2.02 billion in gains every day. This increase in profit suggests that long-term investors are becoming more confident in taking advantage of beneficial market situations.
Sell-Side Risk Ratio
The Sell-Side Risk Ratio is getting close to the high-value region. The entire amount of realized profit and loss received by investors is measured by the Sell-Side Risk Ratio. Every time prices go close to the $100K mark, the price drops since this indicates that holders are taking profits near that level.
Furthermore, a record $12.6 billion was made in realized profit owned for six months to a year. Conversely, a lesser percentage of sell-side pressure was linked to tokens kept for one to two years or more. In particular, 35% of the overall sell-side pressure was given to tokens held for six months or more.
