Bitcoin price drops as long-term holders dump coins

The Bitcoin price is under pressure. Long-term holders are sending old and long-dormant coins en masse to spot exchanges, indicating an active distribution of positions. This emerges from an analysis by CryptoQuant, based on on-chain data that reveals a clear bearish shift.

Bitcoin is available at OKX and Bybit.

Dormant coins flow towards spot exchanges

According to analyst @nino_trade on the CryptoQuant platform, it is precisely the high-conviction long-term holders who are now actively reducing their positions. They are sending coins that have not moved for a considerable time directly to spot exchanges, pointing to distribution pressure from the market itself. This is a significant signal, as this group is known for their patience and their tendency to wait for higher prices.

The Spot Exchange Inflow CDD, visible in the chart below, shows a remarkable decline of no less than 95.35% compared to previous peaks. At the same time, the Miners’ Position Index currently shows a value of -1.43, indicating that miners are also applying relatively little selling pressure. The pressure therefore comes mainly from long-term investors, not from miners.

Derivatives market calms, but the price remains vulnerable

Striking about the current situation is that pressure from the derivatives market is actually decreasing. The Derivative Exchange Inflow CDD currently stands at 495,382, an increase of 130.44% compared to recent levels, but in historical perspective this remains relatively moderate. Large spikes in this figure have often coincided with sharp price movements in the past, but those extreme outliers are now absent.

Despite the declining derivatives pressure, the Bitcoin price remains vulnerable. At the time of the analysis, Bitcoin is trading around $60.000, a level already significantly lower than the recent peaks above $100.000. The combination of active distribution by long-term holders and a falling price raises questions among analysts about Bitcoin’s short-term direction. Anyone considering investing in crypto would do well to take these signals into account, reports CryptoQuant.