Bitcoin Supply Dynamics Create Market Pressure
- Record supply from long-term holders impacts Bitcoin market.
- Supply shift leads to increased market volatility.
- ETFs experience inflows and subsequent redemptions.
Long-term holders and institutional investors are moving Bitcoin’s liquid supply, influencing market structure and ETF flows, with a notable event taking place in late 2025.
These actions are reshaping liquidity dynamics, impacting Bitcoin’s price and ETF performance, potentially causing market volatility.
The “Great HODL” event involves a vast amount of Bitcoin’s supply shifting from long-term holders, impacting liquidity. Long-term holders, including major institutions, typically control over 70% of Bitcoin supply, affecting price and exchange liquidity. Exploring the ancient supply impact of Bitcoin
Key players include long-term holders, institutional investors, and ETF market participants. Recent data indicates a significant shift as coins move, creating pressure on the market and potentially altering supply-demand dynamics in the short term.
The market sees effects in exchange liquidity and price volatility, linked to the movement of dormant coins. Notably, ETF flows have reversed, with pressure on market prices as the available float increases and liquidity dynamics change.
“The structural landscape of Bitcoin has shifted dramatically, with ETF inflows turning to outflows as long-held coins start to move,” reported by TradingView . This dynamic results in financial implications such as increased volatility and corrections in the Bitcoin price. The shift also affects ETF inflows and redemptions, indicating a changing market structure influenced by long-term Bitcoin supply adjustments.
Long-term holders, like miners and institutions, redistribute Bitcoin supply, which historically coincides with cycle tops. Financial markets may experience altered liquidity conditions as coins dormant for years move, potentially affecting investment strategies.
Insights suggest the potential for technology and regulatory shifts due to these dynamics. Historical data shows similar events post-halving, creating pressure on prices and market adjustments, reinforcing Bitcoin’s cyclical nature with each significant supply movement. Latest news and updates from Blockchain explorer
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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