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- Debashree Patra
Debashree Patra
- Reviewed by:
Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Nov 05, 2025 13:45 UTC
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Crypto Market Crash: What’s Really Behind the Bitcoin Sell-Off?
Long-term Bitcoin holders have sold over 400,000 BTC, sparking fear—but analysts say this marks a healthy transition to institutional ownership.
Despite heavy selling, Bitcoin stays above $100K, showing market maturity as volatility tightens and global liquidity starts to rise again.
Bitcoin is once again under pressure, sliding closer to the key $100,000 level. The decline is shaking confidence across the market, especially since traders had expected strength. Over the past month, long-term holders have sold more than 400,000 BTC, one of the largest waves of selling in the network’s history.
These are not short-term traders; these are wallets that have held Bitcoin for many years, some since its earliest days. Their selling has generated fear and uncertainty in the market.
Ethereum and other altcoins are also weakening. The selling pressure has drained liquidity, leaving traders cautious and reducing risk appetite across the board. Many investors who bought near recent highs are now underwater.
What’s The Reason Behind the Crypto Sell-Off?
On-chain data indicates that old Bitcoin wallets, including coins that have remained dormant for years, are suddenly becoming active. This suggests that early Bitcoin adopters and miners are taking profits and reducing their holdings.
Historically, these early holders could not sell large amounts without crashing the price due to limited liquidity. However, the market has changed. With spot Bitcoin ETFs, institutional inflows, and corporate treasuries now holding Bitcoin, the market can absorb large sales without triggering a massive crash.
Thanks to this increased liquidity, early investors are now distributing their holdings gradually and strategically.
Analysts Frame This as a “Transition Phase”
Macro investor Jordi Visser describes this phase not as a market failure but as Bitcoin’s “IPO moment.” In traditional finance, early investors reduce exposure when a company matures and institutional capital steps in. The same appears to be happening with Bitcoin today. Unlike previous cycles, selling from large holders is no longer crashing the price.
Instead, Bitcoin is consolidating sideways in what appears to be a prolonged stabilization phase. Visser believes this marks the transition from early adopters to global capital, where ETFs, corporations, and even sovereign funds begin accumulating Bitcoin as a long-term asset.
Why This Could Be Bullish in the Long Term
Despite all this selling, Bitcoin is still holding above $100,000, a remarkable feat considering the amount of supply dumped into the market. Analysts suggest this demonstrates market maturity.
Technically, Bitcoin’s price is currently compressing into one of the tightest volatility ranges seen in nearly two years. Historically, such low volatility periods often precede significant moves. Additionally, global liquidity is rising again, which has historically benefited Bitcoin. This suggests that the current selling pressure may be temporary.
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FAQs
Bitcoin price is down as long-term holders sell large amounts, triggering profit-taking and short-term fear among retail investors.
Old wallets and early Bitcoin adopters are cashing out profits, marking one of the largest waves of long-term holder selling ever.
Institutional demand and ETF inflows are enabling the market to absorb heavy selling without triggering a major price crash.
Yes. Holding above $100K despite heavy selling shows market strength, and low volatility often precedes major bullish moves.
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