Bitcoin’s price started the new month rough and continued its tumultuous run from October. On Friday afternoon, November 7, the major cryptocurrency briefly fell below the psychological level of $100,000 for the second time in the past week.
Bitcoin price troubles in recent weeks have been attributed to a shift in investor behavior, especially a class known as long-term holders (LTHs). A prominent crypto expert on
BTC’s apparent demand growth turns negative
In his latest post on the However, the crypto expert noted that this increased sales activity by LTHs is not something new.
According to Moreno, it is common for long-term Bitcoin investors to offload some of their holdings during bull markets because they want to make a profit while prices are high. What’s different this time is that there has been no corresponding demand to clean up these emissions.
To support this, Moreno shared a graph showing long-term shareholder spending and apparent demand growth in recent years. For context, apparent demand growth measures the difference between how much of an asset (in this case Bitcoin) is acquired compared to how much is created (mined).
The head of CryptoQuant Research noted that Bitcoin price had historically reached new all-time highs during periods of increased long-term selling by holders – albeit with positive apparent demand growth. As shown in the chart, this happened during the all-time rallies of January-March 2024 and November-December 2024.
The highlighted chart also shows that long-term holders of Bitcoin have been selling since October, which isn’t exactly out of place. However, apparent demand growth has slowed, implying that there has been no buying pressure to absorb LTH supply at higher prices.
Ultimately, this on-chain observation suggests that less emphasis should be placed on the long-term selling activities of Bitcoin holders. If a turnaround in the price of BTC is to occur in the coming weeks, there must first be positive apparent demand growth.
Bitcoin price at a glance
At the time of writing, the flagship cryptocurrency has rebounded above $100,000 and is valued at around $103,700, reflecting an increase of almost 3% in the past 24 hours.
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