The most staunch Bitcoin holders have joined the sell-off, which could signal the beginning of the end of the current crypto downturn, according to Compass Point.
Long-term holders—those who held their coins for at least 155 days—were largely inactive from February to April but have turned sellers in recent weeks, Compass Point analyst Ed Engel wrote in a note on Tuesday.
Over the past two days, they have sold approximately $2.4 billion worth of Bitcoin, which is seriously impacting the supply and demand balance for BTC.
He also emphasized that 26% of Bitcoin sold over the past 30 days was by investors who bought above $90,000.
"This cohort of top buyers has remained resilient throughout the bear market, but they are finally capitulating as BTC approaches new cyclical lows," he added. "Capitulation by top buyers is a very common theme in the late stages of bear markets. This strengthens our belief that the BTC bear market is in its late stages."
Bitcoin continues to retreat from its October record above $126,000 as uncertainty surrounding the Iran war keeps the price under pressure. Meanwhile, the stock market has risen to new highs. This divergence is causing investors to question both dominant Bitcoin narratives: that it is "digital gold" destined to benefit from geopolitical uncertainty, and that it trades as a high-beta tech stock.
On Tuesday, Bitcoin ETFs recorded their 12th consecutive day (and the longest streak in history) of net outflows, according to SoSoValue.