Why Is the Bitcoin Price Constantly Falling? Analysis Firm Says “The Selling Process Has Reached Saturation,” Shares Its Expectations
The post Why Is the Bitcoin Price Constantly Falling? Analysis Firm Says “The Selling Process Has Reached Saturation,” Shares Its Expectations appeared on BitcoinEthereumNews.com.
According to research and brokerage firm K33, selling pressure from long-term Bitcoin investors may be approaching a saturation point after a multi-year distribution process. A report published by K33 Research Director Vetle Lunde noted that the supply of unspent transaction outputs (UTXO) older than two years has been steadily decreasing since 2024. It stated that approximately 1.6 million BTC (around $138 billion at current prices) have returned to circulation during this period, pointing to persistent on-chain selling from early investors. Lunde argued that this scale of reduction could not be explained solely by technical reasons. While acknowledging that factors such as the Grayscale Bitcoin Trust’s transition from a closed-end product to a spot ETF, wallet consolidations, and security-related address updates could explain some early movements, Lunde stated that these elements did not fully account for the magnitude of the supply returning to circulation. According to the report, this picture points to a meaningful distribution process. K33 data reveals that 2024 and 2025 are the second and third highest years in Bitcoin history in terms of reactivation of long-term supply. Only 2017 had a larger volume in this area. However, according to Lunde, the current cycle differs significantly from 2017. Recalling that the movements during that period were associated with altcoin transactions, ICOs, and protocol incentives, Lunde stated that today’s wave is driven by direct selling thanks to the deep liquidity created by spot Bitcoin ETFs in the US and increasing institutional treasury demand. The report also cited large-scale transactions supporting this trend. Examples included an over-the-counter (OTC) sale of 80,000 BTC via Galaxy in July, a whale exchanging 24,000 BTC for ETH in August, and additional sales of approximately 11,000 BTC in October-November. K33 noted that similar activity is common among other large investors and that this could be a…
Filed under: News - @ December 17, 2025 11:22 pm