Bitcoin's recent dip below $111,000 can largely be attributed to a notable wave of selling activity from key investors, as revealed by on-chain analytics. Data indicates that significant holders, often referred to as "sharks and whales," have offloaded a substantial amount of BTC, hindering the cryptocurrency's recovery efforts.
Key Investor Cohorts Initiate Profit-Taking
Analysis of Bitcoin's "Supply Distribution" metric, which categorizes investors based on the amount of BTC they hold, points to a period of profit-taking among influential players. Specifically, addresses holding between 10 and 10,000 Bitcoins — a segment often associated with large investors— collectively shed 17,554 BTC (approximately $1.9 billion) between October 12th and 14th. This particular cohort had previously been in an accumulation phase since late August, and their recent distribution marks a shift that coincided with the cryptocurrency's struggle to maintain upward momentum. The subsequent fizzling of Bitcoin's recovery attempts suggests this profit-taking played a role in the bearish price action.
Long-Term Holders Contribute to Market Pressure
Further insights from on-chain data indicate that even Long-Term Holders (LTHs), typically considered resilient "diamond hands," have participated in the selling. Over the past 30 days, LTH wallets have experienced a net outflow of 265,715 BTC. This represents the largest monthly outflow from this segment since early January, underscoring a significant shift in behavior. While this distribution from LTHs is noteworthy, on a longer-term scale, their overall holdings have still grown by 318,610 BTC (worth an estimated $35.5 billion) since the beginning of 2025, suggesting that despite recent sales, many remain committed. However, the combined selling pressure from both short-term profit-takers and long-term holders has demonstrably impacted Bitcoin’s price, keeping it trading around the $111,000 mark.
