Bitcoin Price Stagnates as Long-Term Holders Sell to Institutions

Bitcoin has been holding steady at the $100,000 mark despite strong institutional demand and steady inflows, leading to speculation about the factors contributing to this stagnation. According to Capriole Investments founder Charles Edwards, the sideways movement in Bitcoin's price reflects a significant shift between long-term holders and new institutional buyers.

Edwards observed that many long-term Bitcoin holders, often referred to as the "OGs," have been selling their positions since the launch of spot exchange-traded funds (ETFs) in January. These holders have been offloading large portions of their holdings to Wall Street buyers, which has contributed to the current price stagnation. Edwards noted that while ETF inflows have been robust, much of this liquidity has been met with heavy selling from early holders exiting at high prices, creating supply pressure that has hindered price growth.

However, the entry of a new class of buyers, particularly corporate treasury allocators, suggests a potential breakthrough. Recent months have seen several corporations around the world turn to Bitcoin as a reserve asset, building strategic treasuries focused on long-term accumulation. This shift in investors is driving what Edwards describes as a "flywheel" effect—a steady, conviction-driven buying that reinforces price support and attracts further institutional interest.

On-chain data supports this trend, showing that six-month-plus Bitcoin holders have risen sharply over the past two months. This group has been in a strong accumulation phase, absorbing more BTC than long-term holders sold over the past 18 months. The consistent pace of accumulation suggests growing conviction among newer market participants. Historically, similar spikes in long-term holding have preceded upward price moves, and if this trend continues, it could mark a bullish shift for Bitcoin.