Bitcoin’s Decline Signals Possible Long-Term Holder Selling Amid Economic Uncertainty

• Long-term holders have distributed 815,000 BTC in the past month, the highest selling pressure since January 2024.

• Risk-off stance mirrors traditional markets, with Nasdaq down 2% amid U.S. economic data delays.

• Spot Bitcoin ETF outflows and negative Coinbase premium indicate reduced U.S. buying pressure, per CryptoQuant analysis.

Bitcoin price decline hits new lows in 2025 amid long-term holder selling and risk-off markets. Explore causes, impacts, and what it means for investors—stay informed on crypto trends today.

What is Causing Bitcoin’s Price Decline in 2025?

Bitcoin’s price decline in 2025 is primarily driven by a shift to risk-off sentiment among investors, exacerbated by the aftermath of the U.S. government’s longest shutdown and increased selling from long-term holders. The cryptocurrency fell below $99,000, shedding nearly 4% from its intraday high of $103,690, according to CoinGecko data. This mirrors broader market pressures, including a 2% drop in the Nasdaq, as participants digest economic uncertainties.

Why Are Long-Term Holders Accelerating Bitcoin Sales?

Long-term holders, who typically anchor market stability, are now accelerating their distribution of Bitcoin, leading to heightened selling pressure. A Glassnode report highlights a sharp 30-day decline in the supply held by these investors, already in negative territory, signaling intensified outflows. Over the past month, approximately 815,000 BTC have been sold—the highest level since January 2024—according to CryptoQuant analysts.

This trend coincides with prices reaching new highs earlier in the cycle, where demand began to contract. Previously robust support from spot Bitcoin exchange-traded funds (ETFs) and corporate buyers like MicroStrategy has waned, leaving fewer buyers to absorb the supply. Charlie Shery, head of finance at BTC Markets, an Australian crypto exchange, noted, “Whales selling in isolation isn’t usually significant. However, what makes it notable now is the lack of meaningful bid support on the buy side to absorb that selling.”

Compounding factors include net outflows from spot Bitcoin ETFs and a negative Coinbase premium, indicating diminished U.S. buying interest. CryptoQuant’s analysis points to a broader contraction in apparent demand, with earlier steady inflows from ETFs no longer offsetting the sell-heavy flow. Shery added, “Earlier in the cycle, ETFs and MicroStrategy were providing steady demand. Without those buyers, the recent sell-heavy flow appears to be driving the steady decline in Bitcoin we have seen.”

The U.S. government shutdown’s fallout further erodes confidence. Weeks of missing economic data have left a “permanently damaged” federal statistical system, as described by officials. The White House confirmed that October’s jobs report will exclude the unemployment rate, adding to macro pressures. Ryan McMillin, chief investment officer at Merkle Tree Capital, a crypto fund manager, explained to COINOTAG, “Nasdaq is down around 2% and Bitcoin off a similar amount, as investors digest the fallout from the U.S. government reopening after its longest shutdown.”

McMillin emphasized that the recent funding bill provides only short-term relief, with investors fixating on “the damage already done.” This uncertainty has prompted a retreat from risk assets, including Bitcoin, which has been range trading since early August. If the $98,000 support level fails, McMillin warns of a potential drop to $90,000 territory, akin to June’s correction. He stated, “The market is really looking for certainty to gain strength, but it is not clear where that is going to come from right now.”

Frequently Asked Questions

What Factors Are Driving the Recent Bitcoin Price Decline?

The recent Bitcoin price decline is fueled by long-term holder selling, ETF outflows, and macro uncertainties from the U.S. shutdown. With 815,000 BTC sold in the past month per CryptoQuant, and Nasdaq’s 2% drop influencing crypto, demand has faded, pushing prices below $99,000 as reported by CoinGecko.

How Might Long-Term Holder Selling Impact Bitcoin’s Future Price?

Long-term holder selling could prolong Bitcoin’s price decline if buy-side support remains weak, potentially testing $90,000 levels. However, renewed ETF inflows or positive economic data might stabilize it. Analysts like those at Glassnode note accelerated distribution, but historical cycles show recovery after such pressures eases.

Key Takeaways

• Heightened Selling Pressure: Long-term holders have offloaded 815,000 BTC recently, the most since January 2024, per CryptoQuant, amid contracting demand.
• Risk-Off Market Sentiment: Bitcoin’s 4% drop aligns with Nasdaq’s 2% decline, tied to U.S. economic data gaps from the government shutdown.
• Need for Buyer Support: Without strong ETF or institutional bids, further downside risks loom; monitor $98,000 for potential shifts to $90,000.

Conclusion

Bitcoin’s price decline in 2025 reflects a confluence of long-term holder selling and macroeconomic headwinds, underscoring the cryptocurrency’s sensitivity to global risk sentiment. As investors navigate uncertainties from delayed U.S. data and waning ETF demand, vigilance is key. Looking ahead, clarity on economic recovery could spark a rebound—consider diversifying portfolios and tracking on-chain metrics for informed decisions.