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Long-term Bitcoin holders have liquidated $41.6 billion worth of BTC as the cryptocurrency fell below $100,000 this week, marking a 20% decline from its October record high of $126,000.
The selling pressure, which includes over $1 billion from wallets dormant for more than a decade according to on-chain data, contributed to $1.3 billion in leveraged position liquidations in 24 hours.
The shift in behavior from typically steadfast long-term investors comes as miners face profitability pressures and regulatory uncertainty clouds the market.
The exodus from Long-term Bitcoin holders marks a rare event in Bitcoin’s cycle. Typically known as the market’s “diamond hands,” these veteran investors are now joining the wave of liquidation.
According to crypto analyst PeeCowYay, ancient Bitcoin wallets — some dormant for over a decade — have offloaded more than $1 billion in BTC, contributing to sharp downside pressure. “This is one of the most significant long-term divestments we’ve seen since the 2022 capitulation,” PeeCowYay noted on X (formerly Twitter).
Bitcoin has plunged over 20% from its October record high of $126,000, with Long-term Bitcoin holders now driving short-term volatility. Some experts suggest this wave of selling is not just emotional but strategic — locking in profits before potential regulatory headwinds hit.
Despite the selloff, not everyone is running for the exits. Influencer and entrepreneur Andrew Tate reportedly “bought the dip,” purchasing 50 BTC worth over $5 million, according to Pete Rizzo of BTC Treasuries.
“Andrew Tate just bought the dip. It’s risky, but contrarians thrive in chaos,” Rizzo posted. His statement reflects a growing class of opportunists betting on a near-term rebound, even as Long-term Bitcoin holders reduce exposure.
However, sentiment remains fragile. CryptoQuant data shows exchange inflows are rising, a signal of potential short-term selling pressure.
Bitcoin miners—often aligned with Long-term Bitcoin holders—are facing severe profitability stress. The network’s hashrate remains near record highs, but falling prices and surging energy costs are eroding margins.
According to Digiconomist, electricity now accounts for 40–60% of total mining expenses. As a result, miners have collectively liquidated $172 million in BTC from reserves to stay solvent. “This is an unsustainable squeeze,” said Alex de Vries, Digiconomist’s founder. “Miners are bleeding cash, and that adds to sell pressure from Long-term Bitcoin holders.”
The combination of miner capitulation and whale liquidation has created a perfect storm for Bitcoin’s price stability.
Adding to the turmoil, AI-trade correlation fears have spooked markets. As algorithmic funds adjust to macroeconomic volatility, automated sell triggers have accelerated the drawdown.
Meanwhile, the ongoing U.S. government shutdown has deepened regulatory uncertainty, leaving crypto investors in limbo. “Policy paralysis is hitting confidence,” said Tyler Richey, co-editor at Sevens Report Research. “Investors want clarity before reaccumulating positions.”
Chart analysts are laser-focused on the $100,000 support zone. A confirmed break below that level could expose Bitcoin to $94,000, and in the most bearish scenario, $70,000–$75,000, according to InvestingHaven.
Veteran trader Peter Brandt estimates a 25% probability of Bitcoin testing the $70K range. “Long-term Bitcoin holders have finally blinked,” Brandt said. “That’s both alarming and, paradoxically, healthy — it resets the market for the next accumulation phase.”
While the current sentiment leans bearish, many analysts believe Long-term Bitcoin holders could re-enter once clarity returns. History shows that these seasoned investors often sell near peaks and buy back during consolidation phases.
If Bitcoin stabilizes above key support zones, Long-term Bitcoin holders may again become the backbone of the next bull run — signaling renewed confidence in the crypto giant’s resilience.
In summary: The capitulation of Long-term Bitcoin holders has rattled markets, yet it also sets the stage for possible reaccumulation. As miner pain deepens and regulatory fog thickens, all eyes remain on one number — $70,000 — the line between fear and opportunity.
