In the last twelve hours Bitcoin has dipped to $91,000, and even when under it for a short moment, leading to some activity among long-term holders. These are the individuals or entities who hold their Bitcoin for at least 155 days. According to Checkmate, a widely followed on-chain analyst, these holders have been selling off a large chunk of their coins this month.
In fact, long-term holders offloaded $60 billion worth of Bitcoin in the last 30 days, which accounts for 21% of all the coins moved by these holders since Bitcoin hit its low during the FTX fallout. That’s a huge amount of profit-taking, especially for our current market cycle.
Could This Signal a Bear Market?
When Bitcoin’s price takes a hit and long-term holders start selling, it’s natural to wonder if a bear market might be brewing. Checkmate highlights three factors that could indicate the start of such a trend:
- Too many people buying Bitcoin.
- Too many coins being purchased.
- Purchases happening at too high a price.
For a true bear market to set in, all three conditions need to be met. As an example, Checkmate points out that if most Bitcoin purchases were made by a single buyer, like MicroStrategy’s Michael Saylor, the “too many people” condition wouldn’t be satisfied. This means it’s not just about price corrections—it’s also about who’s buying and why.
Bitcoin’s Store-of-Value Status Grows
Despite the recent sell-off, Bitcoin’s reputation as a long-term store of value continues to strengthen. Many investors now see it as a modern alternative to gold. Checkmate believes Bitcoin has passed a critical point in its adoption curve.
According to him, more investors are beginning to understand Bitcoin’s unique qualities. They’ve built their belief in it despite years of skepticism and criticism. This growing conviction is leading people to view Bitcoin not only as a financial asset but also as a foundational part of diversified portfolios.
Interestingly, Bitcoin’s market cap recently surpassed that of silver. This milestone reinforces the idea that Bitcoin is carving out a role as a digital store of value, capable of competing with traditional assets like gold and precious metals.
At the time of writing, Bitcoin has found its way up from $91,000 already. It is currently trading at $93,400 according to CoinMarketCap data.