Bitcoin Long-Term Holder Selling Slows, Signaling Potential Market Recovery

VanEck’s latest report shows that selling by long-term bitcoin holders has slowed, indicating a “potentially constructive signal” for the cryptocurrency market. Transfer volumes declined month-over-month across all age cohorts, reflecting reduced distribution pressure from experienced participants.

Despite tighter profitability, bitcoin miner selling remained steady. Total miner revenues fell 11% month-over-month, while mining equities declined 7%. Outflows to exchanges rose only 1% in BTC terms, suggesting miners are preserving reserves rather than liquidating aggressively. Aggregate miner balances, excluding wallets attributed to Satoshi Nakamoto, stood at roughly 684,000 BTC, with 164,000 new BTC mined during the same period.

Industry Shifts Toward AI Business Models

Some mining firms are moving toward AI-centric operations, with Bitdeer selling its BTC treasury and Core Scientific and MARA planning liquidations to support AI infrastructure. VanEck noted that continued low bitcoin prices could force miners to accelerate sales to cover dollar-denominated costs, increasing supply pressure.

Overall on-chain activity decreased, with transfer volumes down 31% and daily fees dropping 27%, partly due to trading moving to off-chain platforms such as derivatives and exchange-traded products.

Bitcoin traded at $70,375 as of March 20, reflecting resilience amid market volatility and Fed rate policies.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.