Bitcoin

Bitcoin’s recent price drop is being attributed to long-term holders rather than institutional investors, despite initial speculation to the contrary.
Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) price fell over 5.6% in the past 24 hours to trade at $92,774 as of 8:52 am UTC on Nov. 26, Cointelegraph data shows.
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 <img alt="Bitcoin $92K price correction triggered by long-term hodlers, not ETFs" src="https://s3.cointelegraph.com/uploads/2024-11/019367d4-140a-7806-a7a9-2ab65f87e2c3" title="">
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 BTC/USD, 1-month chart. Source: Cointelegraph
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However, it wasn’t the institutions or <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/different-types-of-etfs" rel="null" target="null" text="null" title="null">exchange-traded funds (ETFs)</a> that caused Bitcoin’s price decline, as the data points to long-term holders, also known as hodlers, according to Eric Balchunas, a senior ETF analyst at Bloomberg.
The analyst wrote in a Nov. 25 X <a data-ct-non-breakable="null" href="https://x.com/EricBalchunas/status/1861158223979454468" rel="null" target="null" text="null" title="null">post</a>:
<blockquote>
 “I see a lot of CT baffled/frustrated as to how Saylor can buy $5b of BTC but price doesn’t move up -&nbsp; which is same thing I hear sometimes about ETFs after big flows. Here’s data showing what I’ve long been saying: the call is coming from inside the house, it’s long-term hodlers.”&nbsp;
</blockquote>
The correction came shortly after Bitcoin recorded its <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-record-40-monthly-candle-crosses-99-k" rel="null" target="null" text="null" title="null">biggest monthly candle</a> in history as it topped $99,000 on Nov. 22 for the first time. Some analysts still expect Bitcoin to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-to-breach-100-k-in-nov-trump-mulls-crypto-friendly-cftc-chair-finance-redefined-nov-8-15" rel="null" target="null" text="null" title="null">breach the $100,000</a> record high before the end of the month.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-etfs-inflows-china-etfs-outflows" rel="null" target="null" text="null" title="null">Bitcoin ETFs see $2.4B inflows as China ETFs hit record outflows</a>
<h2 id="bitcoin-hodlers-caused-btc-correction-to-92-000-data">Bitcoin hodlers caused BTC correction to $92,000: Data</h2>
Onchain data reveals that <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/what-are-etf-fund-flows-and-why-do-they-matter" rel="null" target="null" text="null" title="null">ETF flows</a> haven’t been the primary causes of sell pressure for Bitcoin.
Moreover, the ETFs have absorbed a significant amount of selling pressure, which came from long-term holders, crypto trader and technical analyst Kyle du Plessis wrote in a Nov. 24 X <a data-ct-non-breakable="null" href="https://x.com/kyledoops/status/1860775408670798325/photo/1" rel="null" target="null" text="null" title="null">post</a>:
<blockquote>
 “Long-term Bitcoin holders sold 128K $BTC, but U.S. spot ETFs absorbed 90% of the selling pressure. Strong institutional demand is fueling BTC’s rally, bringing it closer to the $100K milestone.”
</blockquote>
<figure>
 <img alt="Bitcoin $92K price correction triggered by long-term hodlers, not ETFs" src="https://s3.cointelegraph.com/uploads/2024-11/019367d4-9a51-711b-9c54-9350c7fb7219" title="">
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 Bitcoin: Long-term holders and US spot ETF balances position change. Source: Kyledoops&nbsp;
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</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ether-price-correction-2025-target" rel="null" target="null" text="null" title="null">Ether price faces correction before rally to $20K in 2025 — Analysts</a>
The correction could be beneficial for the sustainability of the current Bitcoin rally, considering the growing leverage in crypto markets.
On Nov. 12, Kris Marszalek, the co-founder and CEO of Crypto.com, warned that the crypto market will <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-market-enters-extreme-greed-needs-deleveraging-before-100k-btc" rel="null" target="null" text="null" title="null">need deleveraging before Bitcoin</a> can breach $100,000.
<figure>
 <img alt="Bitcoin $92K price correction triggered by long-term hodlers, not ETFs" src="https://s3.cointelegraph.com/uploads/2024-11/019367d5-1021-79ad-a261-af7a80c9e14b" title="">
 <figcaption style="text-align: center;">
 Bitcoin: Estimated leverage ratio, all exchanges. Source: CryptoQuant
 </figcaption>
</figure>
The correction didn’t trigger an immediate deleveraging. Bitcoin’s estimated leverage ratio across all cryptocurrency exchanges stood at 0.24, which marks a high last seen in August 2023, CryptoQuant data <a data-ct-non-breakable="null" href="https://cryptoquant.com/asset/btc/chart/market-indicator/estimated-leverage-ratio?exchange=all_exchange&amp;window=DAY&amp;sma=0&amp;ema=0&amp;priceScale=log&amp;metricScale=linear&amp;chartStyle=line" rel="null" target="null" text="null" title="null">shows</a>.<iframe width="100%" height="315" src="https://www.youtube.com/embed/ICIcL8aGB_E" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
Why a Trump Presidency Could Spark an “Altcoin Explosion.” Source: YouTube
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/bitcoin-dominance-crypto-predictions-bull-run-benjamin-cowen-hall-of-flame/" rel="null" target="null" text="null" title="null">Bitcoin dominance will fall in 2025: Benjamin Cowen, X Hall of Flame</a>

Bitcoin $92K price correction triggered by long-term hodlers, not ETFs

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