Long-term investors – those who hold bitcoins for at least 155 days, or about five months – were largely inactive from February to April, but in recent weeks have begun actively selling bitcoin, said Compass Point analyst Ed Engel in a review published on Tuesday, writes CNBC.
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Over the past two days, this group of investors sold approximately $2.4 billion worth of bitcoins. According to E. Engel, this has a significant impact on the supply and demand balance of bitcoin.
The analyst also noted that 26% of the bitcoins sold in the last 30 days belonged to investors who had acquired them for more than $90,000.
“This group of investors remained resilient throughout the price decline, but now, as bitcoin approaches new lows for this cycle, they are finally capitulating,” E. Engel said.
Bitcoin has so far struggled to recover and approach the record of over $126,000 reached in October.
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Since the beginning of the week, the price of bitcoin has fallen by 15% and on Thursday reached its lowest level since February – at 1:30 PM Lithuanian time, it cost about $62,800 (€54,000), whereas a month ago its price was still $80,000. Over the month, bitcoin’s value decreased by 22%, and over 6 months – by 33%.
Meanwhile, stock markets are rising to new highs, and such a divergence of these two curves makes investors question two main claims about bitcoin: that it is “digital gold” that should appreciate during periods of geopolitical uncertainty, and that its price moves similarly to high-risk technology company stocks, CNBC emphasizes.
On Tuesday, bitcoin exchange-traded funds (ETFs) recorded their 12th consecutive day of net outflows – the longest such streak in history, according to SoSoValue data. The total assets under management of bitcoin ETFs decreased to $85 billion, compared to $107.8 billion on May 14.
It is considered that investors may be withdrawing funds from bitcoin to direct them to other opportunities, such as private markets or anticipated initial public offerings (IPOs) of companies like SpaceX, OpenAI, and Anthropic, states investment company QCP. These IPOs are among the most anticipated events in financial markets this year.
