Large bitcoin holders are once again moving millions of dollars to exchanges. Increasing selling pressure and affecting the price of the cryptocurrency. Data shows that some of the earliest investors are taking profits or reducing exposure amid rising market volatility.
Long-term holders are selling, bitcoin price is falling
Since October 1, long-term holders have transferred approximately 13,000 bitcoins worth $1.48 billion to exchanges. According to the latest on-chain data from Arkham. Further analysis revealed that a significant address, identified as Owen Gunden, moved 3,265 bitcoins, or about $364.5 million worth of assets, to the Kraken exchange since October 21.
Such transfers from cold storage to trading platforms usually signal selling pressure. The trend suggests that some of the earliest investors in bitcoin are taking profits or reducing their exposure, which may be reflected in the price of the cryptocurrency. In recent days, this movement has correlated with a decline in the price of bitcoin and has raised concerns that further sales could follow. Bitcoin is currently lagging behind the broader market and has fallen below the $105,000 mark.
Crypto market under pressure
At the time of writing, Bitcoin was trading around $108,000, down 3% in the last 24 hours and more than 7% in the last week. This sell-off came at a time when the broader cryptocurrency market lost approximately $120 billion in capital. The market sentiment follows the flash crash in early October, when the price of BTC fell to $104,000.
Negative market sentiment is also affecting the broader financial environment. Stocks also fell after Federal Reserve Chairman Jerome Powell said that a December interest rate cut is not automatically certain. Traders are now awaiting employment data to be released on November 7; stronger-than-expected figures could confirm the Fed’s restrictive stance and trigger a further decline across the market.
