Core Insights - Long-term Bitcoin holders are selling off their assets at an accelerated pace, leading to a supply-demand imbalance that is causing a slow and steady decline in the cryptocurrency market [1][3][4] - Bitcoin has dropped nearly 30% since reaching a historical high of $126,000 in January, currently hovering around $85,000 without finding effective support [1][3] Group 1: Market Dynamics - Data from blockchain analytics indicates that early Bitcoin holders are cashing out at the fastest rate in recent years, with 1.6 million Bitcoins, valued at approximately $140 billion, being sold since the beginning of 2023 [3][5] - The demand that previously absorbed selling pressure has diminished, as ETF fund flows have turned negative, derivative trading volumes have significantly decreased, and retail participation has notably declined [3][4] Group 2: Selling Pressure and Market Liquidity - The market is experiencing a slow bleed characterized by persistent selling pressure meeting weak buying liquidity, making it harder to reverse the downward trend compared to leveraged-driven crashes [4][6] - The recent sell-off is among the largest in history, with the reactivation of dormant Bitcoins not driven by altcoin trading or protocol incentives, but rather by deep liquidity from U.S. ETFs and institutional demand [5][6] Group 3: Future Outlook - Despite the heavy selling pressure, there are indications that the sell-off by long-term holders may soon come to an end, as approximately 20% of Bitcoin supply has been reactivated over the past two years [7] - It is anticipated that the selling from long-term holders will taper off by 2026, as Bitcoin transitions to net buyer demand amid deeper institutional integration [7]