Bitcoin Liquidity Plummets as Long-Term Holders Sell Off

Bitcoin’s illiquid supply has significantly decreased in recent weeks, with over 62,000 BTC (valued at $7 billion) leaving long-term wallets. This outflow is attributed to profit-taking by investors and the weakening of bullish momentum. While Bitcoin briefly touched $115,000, market sentiment has shifted, leading to a reduction in buy pressure. The data suggests that medium-sized addresses holding between $10,000 and $1 million in BTC are leading this selloff. Notably, long-term holders’ actions have weakened the overall bullish momentum seen earlier.