According to Chris Kuiper, vice president of research for Fidelity’s digital assets division, long-term holders who have held the coin for more than a year include: I believed This will be the main source of sales.
But data cited by Kuiper shows that long-term holders are now selling slowly over time, meaning there is no need to rush out of the market.
As analysts pointed out, many long-term investors expected major cryptocurrencies to experience large gains in October or November based on past price movements. But that didn’t happen and frustration ensued.
Some long-term holders are now tempted to sell their coins early to lock in profits.
“However, with October’s strong seasonal pattern failing to hold and the calendar year coming to a close, long-term holders are looking at year-end taxes and position changes as a day to take advantage of the gains they have already earned,” Kuiper explained.
The analyst said that the disconnect between positive developments in Bitcoin’s fundamentals and lackluster price performance continues.
Who will buy it?
At the same time, there is still significant buying from institutional investors, exchange-traded funds (ETFs), and corporations. This demand helps keep cryptocurrencies alive.
Bloomberg’s Eric Balchunas pointed out that Bitcoin ETFs have been successful in attracting more investments. $500 million worth of inflows on wednesday.
Meanwhile, Samson Mo recently accused recent buyers of Bitcoin of selling their Bitcoin to secure lackluster returns after Bitcoin’s performance deteriorated significantly earlier this year. Furthermore, he claims that this group of buyers rushed to sell BTC following reports that OG had liquidated its holdings.
