Bitcoin Falls From Record High as Long-term Holders Take Profits, Can Drop to $80K

Bitcoin’s (BTC/USD) meteoric rise hit turbulence this week as the cryptocurrency retreated from its all-time high, dropping more than 6% to $91,912 in early trading Tuesday. The decline comes after Bitcoin reached a historic peak above $99,000 last week, marking its largest monthly price gain and bringing its year-to-date returns to 122%.

Long-term Bitcoin Holders Booked Profits as Price Approached Psychologically-Important $100k

On-chain data reveals that long-term Bitcoin holders, not institutional investors, are driving the current selloff, with these veteran investors offloading approximately 128,000 BTC in recent days.

However, U.S.-based spot Bitcoin ETFs have absorbed about 90% of this selling pressure, demonstrating robust institutional demand. These ETFs recorded unprecedented weekly inflows of $3.38 billion between November 18-22, even as the broader market experienced significant liquidations totaling over $500 million during weekend trading.

The recent correction has done little to dampen optimistic projections for Bitcoin’s future. The cryptocurrency has surged approximately 560% from its low two years ago, fueled by multiple catalysts, including a 46% rally following Donald Trump’s election victory and increased institutional adoption.

The market’s strength is further underpinned by several key factors, including the SEC’s approval of spot Bitcoin ETFs in February, an upcoming Bitcoin halving event in April, and expectations of favorable cryptocurrency policies under the incoming Trump administration.

It Could Get Worse Before it Gets Better

Technical analysts suggest the current pullback could extend to the $80,000 level before finding support, though many still anticipate Bitcoin will breach the psychologically significant $100,000 mark before year’s end. Historical patterns indicate Bitcoin typically reaches fresh highs every four years, with each cycle historically seeing more than tenfold increases before significant corrections of 70-80%.

The cryptocurrency continues to show robust market participation, with trading volumes exceeding $88.4 billion across more than 11,800 active markets.

With a market capitalization around $1.8 trillion and a circulating supply of 19.7 million BTC, Bitcoin remains the dominant force in cryptocurrency markets despite current price pressures.

***

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.