Emily Walker
This article discusses recent on-chain data that reveals which parts of the Bitcoin market have been involved in selling during the latest price peaks.
Recent Activity Among Bitcoin Holders for 90 Days or More
YouTuber denome highlighted in a post on X that only a specific section of Bitcoin investors is actively selling to take profits. This information stems from the on-chain analytics company, Santiment, particularly focusing on the Dormant Circulation indicator.
The Dormant Circulation metric tracks the volume of Bitcoin transactions that involve tokens that have been inactive for a certain period.
The following chart illustrates this metric over three different timeframes in recent months:
The chart shows three gauges of Dormant Circulation: for 90 days, 365 days, and 3 years. These metrics reflect the time periods during which coins were held before being moved. For example, the 90-day metric measures the activity of coins held for more than 90 days prior to the transaction.
As evident from the chart, there was a significant increase in the Dormant Circulation for both the 90+ days and 365+ days categories during last month’s Bitcoin rally.
Interestingly, at certain times, the activity levels for the two periods were closely aligned, suggesting that many of the 90-day transactions included older coins lasting over a year. This indicates that long-term holders (LTHs) in the Bitcoin market have been active in selling.
This month, the 90-day Dormant Circulation remains elevated as Bitcoin continues to experience upward momentum, maintaining prices above the $100,000 mark.
In contrast, the 365-day metric hasn’t shown any notable spikes recently, indicating that coins held for 90 to 365 days are predominantly being sold. This timeframe consists of a mix of older short-term holders (STHs) and less experienced long-term holders.
However, since the broader LTH group has not been engaged in selling activities, it can be inferred that most transactions are likely from STHs.
Observing the trends from the past month, it appears some HODLers acted quickly to secure profits but are now optimistic that Bitcoin has the potential to climb even higher; thus, they are refraining from selling.
STHs are known for their tendency to react quickly to market changes, so it’s expected that they continue to cash in on their investments during this hype around the $100,000 price level.
Current BTC Price
As of now, Bitcoin is trading at approximately $104,200, reflecting an increase of over 6% in the last week.