CryptoQuant: New demand for BTC has shrunk, and long-term holders' sell-off has not been absorbed by the market

CryptoQuant's research director Julio Moreno published an analysis on how the recent selling by Bitcoin long-term holders (LTH) differs. He stated that it is normal for long-term holders to sell during a bull market. When prices reach new highs, long-term holders typically take profits. The key factor is whether the demand for Bitcoin is increasing and if it can absorb the selling at higher prices.

For example, from January to March and from November to December 2024, as demand increased (green area), the selling by long-term holders also rose, and prices reached new all-time highs. However, since October of this year, while selling by long-term holders has increased, new demand has been shrinking (red area), making it unable to absorb the supply at higher prices.