Bitcoin Selling Pressure Eases as Long-Term Holders Return to Accumulation

Bitcoin's price has stabilized within a range of $85,000 to $90,000 as of early January 2026. This follows a 32% decline from its previous all-time high of $126,000. On-chain data suggests that selling pressure from long-term holders has diminished significantly.

U.S. spot Bitcoin ETFs have shown signs of re-entry by institutional investors. After experiencing $1.12 billion in outflows from late December to early January, a $335 million inflow was recorded, marking one of the largest in months.

Exchange netflows also indicate a shift toward accumulation. Over $4 billion in BTC was withdrawn from exchanges in December, pointing to increased buying activity from short-term and retail investors.

Why Did Bitcoin’s Long-Term Holders Shift to Accumulation?

Long-term Bitcoin holders, defined as those holding coins for more than six months, have paused their distribution activities. CryptoQuant data reveals a dramatic shift from offloading 674,000 BTC to net purchasing 10,700 BTC in a single day.

This behavioral shift reduces the supply overhang in the market and is considered an early sign of stabilization. It reflects growing confidence among long-term holders, who are accumulating BTC at current price levels.

What Do U.S. ETF Flows Indicate for Institutional Interest?

U.S. spot Bitcoin ETFs serve as a barometer for institutional sentiment. After sustained outflows of $1.12 billion from December 17 to 29, a $335 million inflow signaled a potential reversal in institutional selling.

This pivot was the third-largest daily inflow since October 21, according to CoinGlass. It suggests that some institutional investors are beginning to see value in Bitcoin again.

Retail sentiment, however, remains cautious. The Coinbase Premium Index is at -0.09, showing weaker U.S. demand compared to global exchanges like Binance.

What Role Do Corporate Treasuries Play in Stabilizing Bitcoin?

Digital asset treasury firms continue to accumulate Bitcoin even during price declines. These firms hold approximately $152.4 billion in BTC, representing about 1.175 million coins.

MicroStrategy, for example, added $22 billion in Bitcoin to its treasury in 2025. This sustained institutional demand helps absorb supply during periods of weakness.

The Fear & Greed Index currently stands at 32, indicating a cautious market. However, improving liquidity conditions could enhance upside potential in Q1 2026. Market participants are now watching for confirmation of these stabilization signals. If long-term holder accumulation continues, institutional inflows pick up, and corporate buying remains steady, the price floor could become more defined.