The post Institutional Demand for Bitcoin ETFs May Ease Sell-Side Pressure Amid Long-Term Holder Selling appeared on BitcoinEthereumNews.com.

Bitcoin’s recent surge towards $100,000 highlights increasing institutional demand and selling pressures from long-term holders. As Bitcoin (BTC) reaches new all-time highs, market dynamics shift with long-term holders taking profits and institutions stepping up. “BTC has shown resilience by absorbing the selling pressure, with ETFs playing a crucial role,” noted a recent report by COINOTAG. BTC is poised for further growth as institutional demand rises, but long-term holders may cause short-term volatility by taking profits. Spot Bitcoin ETFs Are Absorbing Selling Pressure Institutional demand in Bitcoin, primarily through spot Bitcoin exchange-traded funds (ETFs), has been a critical factor in absorbing the selling pressure exerted by long-term holders. As these holders, who own approximately 14 million BTC, begin to realize profits, the influx of capital into ETFs has helped stabilize prices in an otherwise volatile environment. According to data from SoSoValue, ETFs have seen weekly inflows averaging between $1 billion and $2 billion in recent weeks. Glassnode reported that from October 8 to November 13, Bitcoin ETFs absorbed an impressive 93% of the coins sold by long-term holders. This mechanism has allowed the price of BTC to continue its upward trajectory despite increased selling. However, the latest statistics show that long-term holders have accelerated their selling activities, resulting in a recent imbalance between supply and demand. This may cause potential price volatility if the selling continues to outpace the demand from ETFs. Are Short-Term Bitcoin Holders Also Taking Profits? Data analyzed by CryptoQuant reveals that the short-term holder Spent Output Profit Ratio (SOPR) has surged to its highest level in over a week. Currently, the SOPR sits at 1.03, indicating that coins moved by these traders are valued at 3% above their purchase price. This metric suggests that short-term holders are not yet taking profits aggressively, as they balance the prospect…

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Filed under: News - @ November 21, 2024 11:21 pm