Bitcoin News Today: Regulatory Fears Drive Bitcoin Veterans' 815K BTC Sell-Off

Bitcoin's veteran holders have dumped 815,000 BTC in recent weeks, raising alarms among investors as the cryptocurrency's $100,000 rally shows early signs of strain. The mass sell-off, tracked by blockchain analytics firm Chainalysis, underscores growing uncertainty in a market that has surged 300% this year amid speculative fervor and macroeconomic tailwinds.

The sell pressure comes as long-term holders-those holding Bitcoin for over a year-offload positions at a pace not seen since the 2022 bear market. According to on-chain data, these holders now control 12.3% of the total supply, down from 15.7% in January. This shift signals a potential reversal in the "accumulation phase" that has defined 2024, with institutional and retail investors scrambling to interpret the implications.

Market analysts point to two primary drivers: profit-taking after a 12-month bull run and regulatory uncertainty following the U.S. Securities and Exchange Commission's (SEC) recent lawsuit against a major crypto exchange. "The SEC's actions have created a climate of fear, especially among older holders who are risk-averse," said Sarah Lin, a crypto strategist at JPMorgan Chase. "This isn't panic-it's calculated hedging."

Meanwhile, the $100,000 price level, once a theoretical milestone, now faces structural resistance. Technical indicators suggest a critical test ahead: Bitcoin's relative strength index (RSI) has dipped below 50 for the first time in three months, while the 200-day moving average remains a psychological hurdle at $68,500. Short-term traders are also on edge, with open interest in Bitcoin futures contracts declining 18% week-over-week.

The dumping coincides with broader macroeconomic headwinds. The Federal Reserve's anticipated rate cuts have not materialized, and inflation data released last week exceeded forecasts, causing a ripple effect across asset classes. "Crypto is no longer a siloed market-it's a mirror of traditional finance," said Michael Chen, founder of MacroViz. "If equities correct, Bitcoin could follow."

Despite the gloom, some bullish signals persist. The number of new wallets holding more than $10,000 in BTC has increased by 40% year-to-date, suggesting sustained demand from high-net-worth investors. Additionally, the Bitcoin Mining Index remains in the green, indicating no immediate risk of network instability.