Long-term Bitcoin holders have, in total, spent a milestone $10 billion to buy the cryptocurrency and have been pulling back from selling as its price retreats from its 2021 all-time highs, according to an analyst.

“For the first time ever, the realized capitalization of long-term holders has exceeded $10 billion,” CryptoQuant contributor Amr Taha said in an Aug. 27 post.

Long-term holders less likely to panic-sell

The realized cap takes into account the price at which each Bitcoin was last sold. It’s realized cap is “often compared to Market Cap to get a sense of the overall market vibe,” according to crypto analytics firm Bitbo. 

Long-term holders are those who’ve held Bitcoin for over 155 days. Taha explained that once holders have crossed the 155-day mark, “the likelihood of selling decreases significantly, meaning these holders are less likely to sell during short-term market fluctuations.”

Since Bitcoin began its 29-day streak of trading below $69,000 on July 30, selling pressure from long-term holders has “decreased 3.7 times,” fellow CryptoQuant contributor Axel Adler noted on Aug. 27.

Bitcoin traded at $59,404 at the time of writing on Aug. 28, down 5.47% in the past 24 hours. The asset is down slightly on the week by 0.11% after touching a high of $64,791, according to CoinMarketCap.

Bitcoin’s price has fallen below the crucial ,000 level that traders have watched closely. Source: CoinMarketCap

Bitcoin’s current price is around 8% lower than the average of $64,490 that long-term holders paid for Bitcoin, according to ChainExposed data.

However, crypto traders believe the price might see further downside, forcing long-term holders to hold on even longer while waiting for better profit-taking opportunities.

“Bitcoin will retrace deep enough to convince you that the Bull Market is over,” pseudonymous crypto trader Rekt Capital added

Many traders view $50,000 as a crucial support level, and if it breaks, it could push Bitcoin into an uncertainty zone.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.