Who’s Selling Bitcoin? Fidelity Research Boss Breaks It Down
Despite visible buying by spot bitcoin ETPs and corporates, bitcoin’s price has not rallied decisively, prompting questions about who is selling. Chris Kuiper of Fidelity Digital Assets attributes ongoing sell pressure to long-term holders. On-chain data, specifically Glassnode’s metric tracking bitcoin unmoved for over a year, usually declines sharply in bull markets as holders take profits, but the current cycle shows a gradual decrease instead of a dramatic sell-off. This signals a slow, steady supply from long-term holders rather than a burst of selling into price spikes. Many investors, who expected a typical four-year cycle blow-off, are reportedly now selling due to disappointment with recent underperformance and year-end tax or position adjustments. Additional analysis shows long-term holders have released a supply volume similar to the 2021 cycle, but over a longer timeframe and without the sharp reversals seen in 2017–2018. This extended, moderate drawdown diverges from previous cycles and helps explain subdued price action despite strong inflows. Kuiper plans to monitor these trends to gauge when selling by long-term holders might subside.
