Bitcoin Long-Term Holder Supply Decline Slows to One-Fifth of Late-August Pace, Easing Selling Pressure

An on-chain analyst said selling pressure in Bitcoin is easing as the decline in long-term holder supply has slowed sharply over the past month. Still, coins recently moved by long-term holders were, on average, transferred at a slight loss.

On Sept. 21, on-chain analyst Axel Adler Jr. wrote in a newsletter that long-term holder supply had fallen by 21,700 BTC as of Sept. 20 from 30 days earlier. The drop has narrowed from 105,900 BTC on Aug. 30 to 47,800 BTC a week ago and 21,700 BTC now.

Long-term holder supply has declined for five straight weeks. But the pace of that decline has slowed to about one-fifth of the level seen at the end of last month, which Adler interpreted as a sign that selling pressure from long-term holders is weakening.

Still, as Bitcoin rose 5.6% last week from $76,800 to $81,200, the long-term holder coins that changed hands were traded, on average, slightly below their purchase price. That suggests a substantial share of the recently moved supply consisted of Bitcoin bought at higher prices.

Adler wrote that while the amount of supply leaving long-term holders is shrinking, the coins still moving remain underwater. The key issue, he added, is whether long-term holder supply turns higher again and whether profit-and-loss conditions improve.