63K Bitcoin Exits Long-Term Wallets: A Surge of Speculative Short-Term Buying

Overview

Bitcoin is currently facing significant selling pressure as it struggles to regain momentum below the crucial $90,000 mark. A recent report indicates that a historic transfer of Bitcoin from long-term holders to short-term holders has occurred, reflecting a shift in market dynamics and investor behavior.

Market Dynamics

Bitcoin has seen a notable movement of 63,000 BTC from long-term holders (LTHs) to short-term holders (STHs), as reported by CryptoOnchain via CryptoQuant. This transfer is marked by a substantial negative daily difference in the Long-Term Holder Net Position Change chart, indicating heavy outflows from wallets typically held by long-term investors. Such behavior is often observed during the late stages of bull markets or near local tops when long-term investors seek to realize their profits.

At the same time, the Short-Term Holder Net Position Change chart displays a significant increase in buying activity from newer market participants, who are acquiring these coins despite the prevailing volatility. This divergence in behavior suggests that while long-term holders are distributing their assets, short-term holders are entering the market, often at higher prices.

This dynamic, while common in late-stage bull markets, raises concerns about the potential risks involved. If the demand from short-term holders does not adequately absorb the supply being offloaded by long-term holders, it could lead to a deeper market correction or a prolonged period of price consolidation. The current market sentiment is fragile, compounded by uncertain macroeconomic conditions.

Technical Analysis

Bitcoin is attempting to stabilize around the $87,000 level following a significant sell-off that saw prices dip as low as $85,946. The cryptocurrency has approached the 100-week moving average, a historically significant support level during bull-market retracements. However, the bounce from this level is currently weak, indicating the prevailing fear among investors.

The recent breakdown from the consolidation zone between $110K and $100K has intensified selling pressure, confirming a loss of market structure on the weekly timeframe. The high-volume distribution observed over the past three weeks highlights a trend where sellers are consistently outpacing demand whenever Bitcoin attempts to recover to higher levels.

The reaction at the 100-week moving average is critical, as previous market corrections have seen bulls defend this area vigorously. Maintaining support above the $83K to $86K range is essential for preserving the long-term bullish structure. Conversely, a weekly close below this zone could open the possibility for further downside toward the 200-week moving average.

Impact on the crypto market

• A significant transfer of 63,000 BTC from long-term to short-term holders indicates a shift in market dynamics.
• Increased selling pressure from long-term holders may lead to further market corrections if not absorbed by new demand.
• The current price action reflects heightened fear and uncertainty among investors.
• The stability around the 100-week moving average is crucial for determining the market’s future direction.
• Ongoing volatility may deter potential new investors, impacting overall market sentiment.

Updated: 11/25/2025, 1:49:43 AM