A turbulent week Bitcoin has seen investor confidence shaken. Key stakeholders have been selling, and the custody of even more Bitcoin seems to have been passed from just a few hands to many.
Substantial outflows from the wallets of significant holders—those with even just 100 BTC to 1,000 BTC stashed inside—have shown, in private chats seen by Decrypt, that these trusted holders—who have long seemed to backstop the price of Bitcoin—have not been in the mood of late to, you know, backstop the price of Bitcoin.
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Mid-Sized Holders Lead the Way in Bitcoin Dumping
The data spotlight a striking phenomenon in Bitcoin’s marketplace over the last week. Wallets that hold between 100 and 1,000 BTC have been sending a substantial amount of the cryptocurrency into the marketplace, with 50,625 BTC having been sold over the last week. Those sales were worth about $4.07 billion. Meanwhile, the wallets that hold between 10 and 100 BTC have also been feeling the urge to sell, with those wallets sending another 7,062 BTC into the marketplace, worth about $567.1 million. So, mid-sized Bitcoin holders are definitely driving the current selling pressure.
📉 Bitcoin's key stakeholders are showing signs of dumping:
🐳 Wallets with 100-1,000 $BTC: -50,625 Bitcoin (-$4.07B) in the past week
🦈 Wallets with 10-100 $BTC: -7,062 Bitcoin (-$567.1M) in the past week
Over the long-term, markets tend to fluctuate with a mid-sized… pic.twitter.com/jSioi9mzuS
— Santiment (@santimentfeed) March 13, 2025
A market that remains sensitive to supply and demand fluctuations can feel the impact of the actions of these wallet tiers on Bitcoin’s price. In the long run, we have seen a nearly direct relationship between the price of Bitcoin and the market’s behavior when it comes to these mid-sized holders. If they decide to for whatever reason sell off their assets, it can— and mostly tends to— trigger wider market movements and lead to a price drop.
Short-Term Holders Contributing to Market Weakness
The concerns are compounded by what short-term Bitcoin holders are doing. These are people who have held the asset for one to three months. Since February, the short-term holders have taken $100 billion in losses. Adding insult to injury, these holders are selling—often at a loss—and this is putting more downward pressure on the already fragile Bitcoin price. It is clear that a significant number of these holders have decided to exit their positions. Market sentiment has shifted from a bullish outlook to one that is cautious and perhaps even fearful.
Short-term $BTC holders (1-3 months) have dumped $100B in realized losses since February—selling at a loss and adding pressure to the market.
Prices could dip further, but their exit might be clearing out weak hands.
If long-term holders step in, this could be a pivotal shift… pic.twitter.com/ntGy18W7g4
— Kyledoops (@kyledoops) March 14, 2025
Currently, a significant factor contributing to the downturn of the Bitcoin market is the selling of the cryptocurrency by short-term holders at a loss. Often referred to in the cryptocurrency community as ‘weak hands,’ these individuals may be selling out of fear or uncertainty about Bitcoin’s forthcoming price movements. Still, they might also be selling for more positive reasons; namely, their selling could be part of an overall cleansing of the speculative market for Bitcoin.
Potential for Further Price Declines
Even more, by mid-sized and short-term holders exerting pressure on Bitcoin, we could see its price drop in the next few days or weeks. The market may react to the offloading of these larger stakeholders by seeing even more selling pressure. In this scenario, further Bitcoin depreciation seems likely.
Nevertheless, the departure of the weaker hands is not in and of itself a bad thing for Bitcoin’s long-term prospects. After the market has stabilized post-sell-off, there may be a chance for not just a recovery but for a scenario seen all too often in Bitcoin’s storied past: a price floor followed by an upward spike.
This is not something that strange companies like Goldman Sachs and JP Morgan should be cheering for, or that we should be cheering for, either. Enabling Bitcoin to be a better store of value and a better medium of exchange should be the end game.
A Shift in Sentiment: Could Long-Term Holders Save the Market?
The crucial question now is whether Bitcoin’s dip will be bought up by long-term holders who will step in to stabilize the market. Long-term holders—that is, folks who have had Bitcoin for over a year—are generally less impacted by the kind of price fluctuations that we see in the market lately. If these holders start to accumulate more Bitcoin during this dip, it could mark a crucial change in the sentiment surrounding Bitcoin.
Considering Bitcoin’s history of price movement cycles, one can discern that the long-term holders of the digital asset have, on many occasions, been the prime movers in recovering the Bitcoin price after it (not too infrequently) plummets. With the current Bitcoin price at $20,000—this after it was at an all-time high of about $900 in December 2017—one can muse on the price recovery potential of the asset in light of its history.
Conclusion: Bitcoin Faces Uncertainty, But a Rebound Is Possible
To sum up, the Bitcoin market is under substantial pressure, with key stakeholders like mid-sized and short-term holders appearing to dump their assets. The combined selling activity has led to some sizable losses and has pushed Bitcoin’s price down even further. On the other hand, seeing weaker hands exit might clear the way for a Bitcoin market rebound—if, of course, long-term holders now step in to provide support.
Currently, the market is uncertain; however, this period of volatility may provide an opportunity for long-term investors who believe in Bitcoin to invest. If these investors start accumulating Bitcoin at lower prices, it may help signal the start of a new upward trend and provide much-needed stability to the market.
As ever, market watchers will need to keep a close eye on things, as a crucial next few weeks could very well decide Bitcoin’s price path for the balance of the year. The question is: will the HODLers step in and restore market confidence, or will the market be driven deeper into correction by further selling pressures?
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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