Bitcoin News Today: Investor Profit-Taking Drives Bitcoin's 18% Correction

Bitcoin's price trajectory has long been analyzed through economic and market data, but a recent surge in selling pressure from long-term holders has drawn attention to the human element behind the numbers. While speculative narratives about moon cycles and astrological predictions have gained traction in crypto circles, the latest on-chain metrics reveal a more grounded explanation for Bitcoin's recent volatility.

The cryptocurrency's recent pullback to $110,771.86, following a peak of $126,200 in October, reflects a typical 18% correction in a bull market cycle. However, the source of this downward pressure lies not in external macroeconomic factors but in the behavior of existing Bitcoin holders. According to on-chain analyst Checkmate, nearly half of the selling pressure comes from coins held for six months to one year, signaling profit-taking by investors who bought during the 2024 price slump and subsequent recovery, according to a CoinDesk analysis.

This trend is underscored by two key metrics: revived supply and average coin age. Revived supply—the total value of dormant coins returning to circulation—has reached $2.9 billion daily, the second-highest level of the current cycle. Simultaneously, the average age of coins being sold has risen, indicating that long-term holders are increasingly active in the market. These dynamics suggest a shift in investor sentiment, with those who accumulated Bitcoin during the April 2025 price dip (when it fell to $76,000 amid tariff-related volatility) now capitalizing on favorable conditions, the CoinDesk piece noted.

The data also highlights a broader pattern: realized profits have surged to $1.7 billion per day, a figure that aligns with historical peaks during market tops. This metric, combined with the concentration of selling pressure among mid-term holders, points to a market grappling with profit realization rather than panic-driven selling, the CoinDesk report added. Checkmate emphasized that such behavior is a natural part of the bull cycle, noting that external factors like "manipulation, paper Bitcoin, or suppression" have played a minimal role in recent price resistance, the article quoted.

While some analysts have proposed esoteric frameworks—such as moon cycles—to predict Bitcoin's next move, the empirical evidence points to a more conventional explanation. The $126,200 peak and subsequent correction follow a standard 20% retracement pattern, a recurring feature of bull markets since 2023, the CoinDesk analysis suggested. This suggests that the market may stabilize in the near term, though further selling pressure from long-term holders could prolong the correction.