Bitcoin Absorbs $1.78 Billion in Sales From Long-Term Holders

Bitcoin, the world's largest cryptocurrency by market capitalization, has been experiencing a period of significant selling activity, with millions of dollars in BTC changing hands since May. Despite this, the market has shown remarkable resilience, absorbing the selling pressure without a notable drop in price. This stability is attributed to a growing and discreet demand, which has effectively absorbed the sales, preventing a market downturn.

Long-term holders (LTH), who have held their bitcoins for 3 to 10 years, have been cashing out, with notable profits made in the 3–5 year bracket ($849 million), 7–10 years ($485 million), and 1–2 years ($445 million). However, the market has absorbed this selling without flinching, indicating that new demand is coming in. Analysts view this as a healthy rotation from strong hands to new buyers, suggesting that the market is in a constructive phase rather than a warning sign.

Historically, July has been a favorable month for Bitcoin, with an average performance of +7.56% since 2013. This year, the market is experiencing a prolonged stagnation phase, with 195 days of sideways price action since December 18, 2024. This consolidation period, however, is often a precursor to spectacular leaps, as suggested by combined data of prolonged stagnation and absorbed sales volumes, which indicate accumulated energy.

Despite the selling pressure, Bitcoin's price has remained stable, indicating that the market is absorbing it due to steady demand. Institutional demand has also played a significant role in anchoring the market, with firms aggressively buying Bitcoin at lower prices. This continued demand from institutional investors suggests that Bitcoin's value is likely to remain strong in the near future.

The current trend of HODLing suggests that investors are confident in the long-term value of Bitcoin and are willing to wait for further price appreciation before selling. The market's ability to absorb selling pressure and the continued demand from institutional investors indicate that Bitcoin's value is likely to remain strong in the near future. However, analysts anticipate a summer spike, driven by favorable historical patterns, which could propel BTC between $140,000 and $150,000 before a new calm.