Bitcoin News Today: Bitcoin's Sell-Off Sparks Debate: Mid-Cycle Correction or Broader Downturn?

Bitcoin Long-Term Holders Sell 815K BTC in 30 Days, Fueling Market Volatility

Bitcoin fell below $100,000 for the second time in a week on Thursday, intensifying concerns over market stability as long-term holders offloaded a record 815,000 BTC in 30 days-the highest selling volume since January 2024. This surge in distribution, spanning cohorts holding Bitcoin for 6 months to 7+ years, has created a persistent supply overhang, according to data from CryptoQuant. Analysts note the pattern mirrors prior market peaks, where LTHs locked in profits after prolonged rallies, often preceding periods of consolidation.

The price decline triggered a $683 million liquidation event within 24 hours, with $556 million in long positions wiped out. Bitcoin alone accounted for $164.5 million in liquidations over four hours, compounding pressure from Ethereum and Solana. Meanwhile, institutional and retail demand remains subdued. SoSoValue data highlights suppressed investor confidence, with Bitcoin's futures open interest declining from $94.12 billion in October to $68.37 billion currently.

Market analysts caution that LTH selling amplifies liquidity risks. "When seasoned wallets reintroduce BTC to circulation, price support weakens," said one analyst cited in a Kobeissi Letter tweet. This dynamic, combined with a $1.22 billion ETF outflow in the prior week, has created a perfect storm for volatility.

The drawdown has sparked debate over whether the market is experiencing a mid-cycle correction or a broader bearish shift. Bitfinex analysts argue the current phase resembles 2024 and early-2025 consolidation periods, with corrections averaging 22% from all-time highs before reversals. At press time, 72% of BTC supply remained in profit, a bullish signal for sustained recovery. Glassnode also noted early signs of buyer re-engagement, with spot trading volume surging to $14.1 billion on November 11 from $11.5 billion the prior week.

Broader crypto markets mirrored Bitcoin's struggles. BNB's futures open interest dropped 2.39% to $1.41 billion. Meanwhile, Bitcoin's institutional adoption continued to expand, with the Trump administration's Strategic Bitcoin Reserve and the GENIUS Act cementing its role as a reserve asset. Anchorage Digital's recent custody expansion further institutionalized Bitcoin DeFi, opening avenues for yield-bearing strategies.

The path forward hinges on renewed demand. "Buyers must step in at $98,000–$100,000 to prevent a deeper correction," said analysts. While ETF inflows returned modestly, sustained institutional participation remains critical. With Bitcoin's total value locked in DeFi surpassing $1 trillion, the ecosystem's growth could reinforce long-term sentiment-if short-term volatility subsides.