The price of Bitcoin began the new month on a rocky path, continuing its tumultuous journey from October. On the afternoon of Friday, November 7, the premier cryptocurrency momentarily dropped below the psychological threshold of $100,000 for the second time in a week.
This recent downturn in Bitcoin’s price can largely be attributed to a noticeable change in investor behavior, particularly among long-term holders (LTHs). A notable crypto analyst on X has provided further insight into how this shift is affecting Bitcoin’s value.
BTC Apparent Demand Growth Turns Negative
In a recent post, Julio Moreno, Head of Research at CryptoQuant, acknowledged that Bitcoin long-term holders have been actively offloading their assets in recent weeks. Moreno pointed out that while increased selling from LTHs is common during bull markets, the current situation reveals a concerning lack of demand to absorb these offloads.
According to Moreno, it’s typical for long-term investors to realize profits by reducing their holdings when prices rise. However, what’s distinct this time is the absence of counterbalancing demand. Moreno supported his analysis with a chart illustrating the relationship between long-term holder spending and apparent demand growth over the past few years. Apparent demand growth reflects the gap between how much Bitcoin is being acquired versus the amount being mined.
The chart showcased past instances where Bitcoin prices soared to new all-time highs in conjunction with increased sales from long-term holders, but these were accompanied by positive demand growth. These bullish periods occurred during the historic rallies of January to March 2024 and November to December 2024.
The current trend indicates that while long-term holders have started selling since October—a normal behavior—the accompanying demand growth has been declining. This contraction signals a lack of buying pressure necessary to soak up the additional supply from LTHs at elevated price points.
Ultimately, these on-chain observations suggest that attention may need to shift away from the selling patterns of long-term holders. For Bitcoin’s price to recover in the upcoming weeks, a resurgence in apparent demand growth will be essential.
Bitcoin Price At A Glance
As of the latest updates, Bitcoin has rebounded, settling back above $100,000 and now valued at approximately $103,700, reflecting an almost 3% increase in the last 24 hours.
