Bitcoin Extends Bear-Market Slide as Long-Term Holders Increase Selling

Price Decline and Market Context

Bitcoin’s latest sell-off pushed the token below $60,000, deepening a downturn that has persisted despite attempts to establish a sustained recovery. The cryptocurrency is down approximately 28% year to date and remains more than 50% below its peak reached in October.

The token briefly fell to $60,000 in early June, marking its lowest level since late 2024. Since the market lows on March 30, bitcoin has underperformed broader markets, highlighting continued relative weakness in the asset compared with other risk assets.

Some strategists remain cautious about declaring that the market has reached a bottom. However, current price action and positioning data are being closely watched for signs that the cycle is nearing a capitulation phase.

Long-Term Holder Selling, ETF Outflows, and Liquidity

A key feature of the recent decline has been increased selling by long-term bitcoin holders. According to Compass Point analyst Ed Engel, selling from holders with positions of six months or longer “continues to increase which is a typical sign of late-cycle capitulation.” This behavior is often interpreted as a signal that more established investors are reducing exposure after a prolonged downturn.

Investor sentiment has also been pressured by spot bitcoin ETF outflows. These institutional vehicles, which previously helped channel capital into the asset, have recently seen record outflows, according to Deutsche Bank strategist Marion Laboure. Laboure wrote that bitcoin’s latest sell-off reflects a combination of “a hawkish shift in the Fed outlook” alongside “record institutional ETF outflows and thinning liquidity.”

Additionally, a shift in capital allocation toward AI-related investments has weighed on demand for bitcoin this year. Together, these factors—long-term holder selling, ETF outflows, tighter liquidity, and competition from AI-focused assets—have contributed to bitcoin’s underperformance and its slide back below the $60,000 level.

FAQ

How far is bitcoin from its all-time high?
Bitcoin is currently about 50% below its all-time high reached in October.

What is bitcoin’s performance so far this year?
Bitcoin is down roughly 28% year to date.

What are analysts citing as key drivers of the recent sell-off?
Analysts highlight increased selling by long-term holders, spot ETF outflows, a hawkish shift in the Federal Reserve outlook, thinning liquidity, and a shift of capital toward AI-related investments.

How has bitcoin performed relative to broader markets since late March?
Since the March 30 market lows, bitcoin has underperformed broader markets.