Fidelity "Bitcoin weakness due to gradual selling by long-term holders"

An analysis says that Bitcoin (BTC)'s recent weakness is due to gradual selling by long-term holders.

On the 12th (local time), Chris Kuiper, Vice President of Fidelity's Research division, said, "The reason Bitcoin is showing weakness despite steady buying by exchange-traded products (ETPs) and corporations is the gradual selling by long-term holders."

He explained, "The indicator 'the proportion of coins unmoved for over 1 year (percent of coins active 1y+)' usually steadily rises in bear markets and tends to plunge during bull markets alongside selling by long-term holders," and added, "However, what is notable in this cycle is that the decline is proceeding gradually."

Kuiper said, "Even when Bitcoin's price reached an all-time high in this cycle, there was no sharp selling of long-term holdings," adding, "Instead, while the price has risen moderately and moved sideways, the share held by long-term holders has gradually declined."

He also analyzed, "Some investors are feeling fatigue as Bitcoin's recent returns lag traditional assets such as gold or the S&P500," and "especially with expectations for the four-year cycle bull market dashed, some long-term holders are realizing gains for year-end tax and position adjustments."