VanEck Report: What Is the Source of Bitcoin Sales?

In recent times, the sharp pullback in Bitcoin's price has caught the attention of investors, while asset management company VanEck's new report sheds light on this situation. The report reveals that a significant portion of the recent sales came from wallets in the mid-cycle. The increase in coins that have moved in the last five years stands out as an important indicator in understanding the reasons for the selling pressure.

According to VanEck, coins that have not been moved for more than five years exhibit a remarkably stable stance. The fact that long-term investors have added approximately 278,000 Bitcoin to this category in the last two years indicates that long-term confidence in the market remains intact. At the time of writing this news, the price of Bitcoin is trading at $86,696, which represents a 31% decrease from the all-time high of $126,080 seen in October.

Analysts point out that the price drop is not solely due to this transformation but is also linked to forced liquidations, partial sales from some long-term wallets, and sharp volatility in futures trading. Coin Bureau CEO Nic Puckrin expressed that large-balance former investors have reduced their positions in recent weeks, creating a new surge in supply in the market. Notably, Carol Alexander from the University of Sussex pointed out that the rapid price movement is due to aggressive trading strategies on offshore exchanges, which is an unprecedented situation.

In VanEck’s analysis, a 32% drop has been observed in coins that have been inactive for 3 to 5 years, with these coins being moved to new addresses. The company describes this movement not as a capitulation but as a classic behavioral pattern of investors moving with the change in the cycle. Additionally, the report notes that a significant unwinding has occurred in Bitcoin perpetual futures positions; open positions have decreased by 20% in Bitcoin terms and 32% in dollar terms since October 9.

In conclusion, the stable stance of long-term investors and the movement of mid-cycle coins indicate that Bitcoin has entered a reset phase. It is emphasized that this structure has been observed before tactical recoveries in previous cycles. Investors must closely monitor this transformation process and the changes occurring in the market.