Cryptocurrency market analytics company CryptoQuant has shared insights indicating that during the rally in November and December, long-term holders (LTHs) realized large potential profits, implying that some chose to sell portions of their holdings to lock in gains. This analysis was derived using the Spent Output Age Bands (SOAB) indicator, which tracks Bitcoin consumption or sales based on the holding periods of investors.
The data shows that holders with a 6-12 month holding period, represented by the orange band, were the most active sellers during this time. These investors likely purchased Bitcoin around the launch of the spot exchange-traded fund (ETF) in early 2024. Their selling activity may have contributed to downward pressure on Bitcoin’s price. However, strong demand has helped keep Bitcoin’s value within the $90,000–$100,000 range.
Notably, holders who have held Bitcoin for over a year sold relatively little during this period. Additionally, the ‘Binary CDD’ indicator reveals a decrease in the sale of older Bitcoin in December compared to November, suggesting that many long-term holders may be holding out for even higher prices before selling.
In November, when Bitcoin had just surpassed the $75,600 mark, cryptocurrency market intelligence firm Glassnode also noted that many LTHs were holding off on selling, waiting for higher prices. Furthermore, the firm highlighted that since mid-October, spot Bitcoin ETFs have played a crucial role in absorbing most of the sell-side pressure from LTHs.
Bitcoin Faces Decline, Trading Below $96K, Market Anticipates Volatility
As of the current update, Bitcoin is trading at $95,723, marking a decline of over 2.97% in the past 24 hours. After briefly attempting to reclaim the $100,000 level earlier today, following a dip below $93,000 just before the holiday, Bitcoin has fallen to its current price with the opening of the Asian markets.
Moreover, analysts at Singapore-based cryptocurrency trading firm QCP Capital expect potential volatility by the end of the week as Friday’s Mega Expiry approaches, with volatility spreads elevated at +2.0.
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