Bitcoin Selloff Driven by Long Holders, Says Bitwise CIO

Bitcoin’s sharp decline in February 2026 has unsettled investors and revived talk of market manipulation. The price fell from nearly $90,000 to around $63,000 in just a short period. Social media quickly filled with claims that large players were forcing the market down. However, Matt Hougan, Chief Investment Officer at Bitwise Asset Management, has dismissed those theories. He argues that the recent Bitcoin selloff was driven by long-term holders taking profits, not by coordinated dumping.

Bitcoin Selloff Fueled by Long-Term Holders

According to Hougan, the drop in Bitcoin reflects a natural cycle rather than manipulation. Many investors who bought Bitcoin years ago saw major gains as prices climbed toward $90,000. For these holders, selling part of their position makes financial sense.

When long-term holders begin to exit, the impact can be strong. Large amounts of supply enter the market, which pushes the price down. Hougan says this type of activity is common after major rallies. It does not require a hidden group controlling the market. Instead, it shows investors responding to opportunity.

On-Chain Data Backs the Explanation

Blockchain data appears to support this view. Analytics firms Glassnode and CryptoQuant report a 15% rise in movements of coins that had been inactive for over a year since late January 2026.

This increase suggests older wallets began moving Bitcoin as prices peaked. Dormant coin movement often signals profit-taking by experienced holders. The data does not show signs of sudden, coordinated dumps. Instead, it points to gradual selling by long-term investors who waited for higher prices.

Signs Bitcoin May Be Near a Bottom

Hougan believes Bitcoin could now be in the process of forming a bottom. He notes that similar patterns appeared in 2018 and 2022. In those cycles, heavy selling from long-term holders was followed by rebounds averaging about 35% within two months.

While no cycle is identical, the historical trend gives some investors hope. Bitcoin has often corrected sharply before resuming upward momentum. Hougan’s outlook suggests the recent decline may be a reset phase rather than a structural breakdown.

As always, markets remain uncertain. Yet if past behavior is a guide, Bitcoin’s current weakness could lay the groundwork for its next recovery phase.

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