Bitcoin price under pressure as long-term holders dump $45 billion
Bitcoin's price has dropped nearly 20% from its recent peak of $126,000, now trading around $102,000. The decline is attributed to waning conviction among long-term holders who sold approximately 400,000 BTC (around $45 billion) in the last month. Analysts attribute the sales to profit-taking and weakening demand, with whales and mid-size investors reducing their exposure. Over $2 billion in crypto liquidations were reported in 24 hours. Analysts warn Bitcoin may consolidate or drop further to $85,000 if the selling pressure continues.
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Bitcoin's Recent Downturn
Bitcoin’s price has fallen nearly 20% from last month’s peak above $126,000, currently trading around $102,000 at press time. This decline highlights a struggle in maintaining positive momentum. Over the past day, Bitcoin posted a 1.37% loss, and for the week, it is down 9.2%, underscoring a broader weakness in the crypto market. Long-term holders have sold approximately 400,000 BTC, worth about $45 billion, in the past month, pointing to waning conviction among its most steadfast investors.
Key Contributors to Bitcoin’s Decline
The recent downward trend in Bitcoin appears to stem less from leverage unwinds and more from spot selling among long-term holders. According to a Nov. 5 Bloomberg report, wallets holding Bitcoin for 6 to 12 months have been offloading coins, signaling profit-taking after this year’s rally. Markus Thielen from 10x Research noted that many investors are selling because new demand has weakened, and 'people are underwater, they need to close their positions.'
Market Liquidations and Reactivated Bitcoin
Market liquidations have surged, with over 319,000 previously inactive BTC being reactivated, much of it through real sales rather than internal transfers, as highlighted by K33 Research’s Vetle Lunde. In the past 24 hours alone, $2 billion in crypto positions have been liquidated, which is a sharp contrast to $19 billion in liquidations during October’s crash. This selling pressure continues to undermine institutional efforts to absorb excess Bitcoin supply.
Impact on Investor Sentiment and Recovery Challenges
The selling wave among long-term holders is shaping both market sentiment and Bitcoin’s price direction. Accumulation among whales holding 100 to 1,000 BTC has slowed significantly, signaling weak buying appetite among mid-sized investors. If current conditions persist, analysts suggest Bitcoin might continue to consolidate or drift lower, potentially dropping to $85,000 before any meaningful recovery takes place.
Broader Crypto Trends
Bitcoin’s struggles mirror the broader weakness in the crypto market, as assets across the board face selling pressure and a lack of new demand. Related concerns are reflected in other assets such as Solana, which recently tested the $150 support level, raising fears of further downside in the market.