Bitcoin's long-term holders begin selling as price hits new 2026 low

The cryptocurrency market is facing intense selling pressure, with Bitcoin (BTC) prices plummeting and key support levels failing. On June 4, Bitcoin briefly dipped below $62,000, marking its lowest point since February.

This downturn has prompted even the most steadfast long-term holders to begin selling their assets. Analysis from Compass Point indicates a notable shift, as holders who typically maintain positions for over 155 days started selling in recent weeks after remaining largely inactive between February and April. Ed Engel, an analyst at Compass Point, reported that these holders sold approximately $2.4 billion worth of Bitcoin in the preceding two days, significantly affecting the cryptocurrency's supply and demand balance.

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This has had a significant impact on the supply and demand balance for Bitcoin.

Furthermore, a substantial portion of recent Bitcoin sales came from investors who purchased the cryptocurrency at prices above $90,000. These investors, who previously held firm during market downturns, are now reportedly "capitulating" or selling at a loss as prices approach the current cycle's low. Engel views this capitulation among high-price buyers as a common occurrence in late-stage bear markets, increasing his confidence that the Bitcoin bear market may be nearing its end.

Adding to the pressure, Bitcoin ETFs have recorded an unprecedented 12 consecutive trading days of net outflows, according to data platform SoSoValue. The total assets under management for these ETFs have fallen from approximately $107.8 billion on May 14 to $85 billion. Analysts like Alex Saunders from Citi note that ETF flows are a critical driver of Bitcoin's price, explaining about 45% of weekly return variations and serving as a key indicator of market demand. The sustained outflows, coupled with a decreased likelihood of new U.S. market regulatory bills passing, could further dampen market momentum.

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ETF fund flows are an important driver of Bitcoin prices, explaining about 45% of weekly return variations and serving as an important indicator of market demand.