Mid-Cycle Wallets Drive Bitcoin Selling, VanEck Says

Bitcoin’s recent sell-off is driven by mid-cycle portfolios, while long-term holders have remained remarkably stable, according to VanEck.

The fund management giant said in a Nov. 19 statement report that selling by these mid-cycle wallets, which purchased BTC early and mid-cycle, is what caused Bitcoin to fall more than 20% over the past month and more than 31% since its all-time high of $126,000 on October 6.

Bitcoin continued its fall in the past 24 hours, down more than 6% to trade at $86,129.36 as of 1:35 a.m. EST

BTC Price (Source: CoinMarketCap)

Long-term Bitcoin conviction remains intact

VanEck said that wallets containing coins last moved within the last five years account for the majority of recent selling activity, adding that older holders have remained “remarkably stable” even as investor sentiment remains negative.

He added that coins moved more than five years ago have added around 278,000 BTC over the past two years, showing that long-term investor conviction remains intact.

According to the report, the 3- to 5-year-old age group has fallen 32% over the past two years as mid-cycle investors’ coins have changed hands, but VanEck believes this trend is due to turnover among cyclical traders rather than decade-long capitulation of holders.

The asset management company also highlighted a reset of its speculative positioning. The company said open interest in Bitcoin perpetuals has fallen 20% in BTC terms and around 32% in US dollar terms since October 9. This pushed funding rates to levels similar to previous periods, the company said.

VanEck concluded that the combination of long-term investor stability, cohort rotations, and futures market capitulation leaves Bitcoin in a state of “reset” that has historically been followed by tactical rebounds.

Related articles:

Best Wallet – Diversify your crypto portfolio

• Easy-to-use, feature-driven crypto wallet
• Get Early Access to Upcoming Token ICOs
• Multi-chain, multi-wallet, non-custodial
• Now on App Store, Google Play
• Stake to win a $BEST native token
• More than 250,000 active users per month