To investors, Bitcoin holders that previously showed strong-hands are starting to sell their bitcoin. This shouldn’t be a surprise — as the price of bitcoin rises, some percentage of holders are willing to sell their assets to take profit off the table.
There's always a portion of the market that is holding from last bull run but doesn't actually understand the market cycles, so when they see the old ATH get hit again they think that'll be the top again so they sell right at the start of the bull market. Saw the same thing last cycle, saw plenty of people on bitcoin forums in 2020 talking about how they would sell once Bitcoin gets back to $20k, thereby insuring they miss the entire bull run haha instead of waiting just months to make far more money.
I haven't looked at the data, but I would assume that a lot of people who are selling BTC are still believers in it.
They know about https://en.wikipedia.org/wiki/Ergodicity and the importance of not putting too much money in each bet.
They take *some* risk off the table periodically.
This simulation blew my mind and shows why this is important: https://www.youtube.com/watch?v=f1vXAHGIpfc
There's always a portion of the market that is holding from last bull run but doesn't actually understand the market cycles, so when they see the old ATH get hit again they think that'll be the top again so they sell right at the start of the bull market. Saw the same thing last cycle, saw plenty of people on bitcoin forums in 2020 talking about how they would sell once Bitcoin gets back to $20k, thereby insuring they miss the entire bull run haha instead of waiting just months to make far more money.
Nice research, thanks. Not bad if BTC will move to stronger hands 💪
Could it be that long term holders are just moving their Bitcoin to "safer" ETF's?