Bitcoin’s price is rising presently, showcasing the potential for further upside growth. However, optimism and confidence in the largest cryptocurrency asset might be gradually decreasing as long-term holders’ balances have fallen sharply in the past few days.

Are Long-term Holders Of Bitcoin Losing Faith In The Asset?

Recent reports show a shift in investors’ sentiment due to Bitcoin’s long-term holders’ balances dropping to a new low in years. Leading market intelligence and advanced DeFi platform IntoTheBlock shared the development on the X (formerly Twitter) platform, prompting speculation about the reasons for the current dumping activity.

This negative pattern points to heightened profit-taking or strategic repositioning as the price of Bitcoin fluctuates constantly. It is important to note that the steep decline in long-term holdings may impact market dynamics, possibly influencing BTC’s price stability and indicating a change in the attitude of seasoned investors.

According to IntoTheBlock, with a steady decrease in their holdings, the long-term Bitcoin holders currently own about 12.45 million BTC, marking its lowest level since July 2022, which reflects reduced confidence in the digital asset among old investors.

Also, the platform highlighted that this sharp decline is less significant than in past cycles. Unlike past cycles, whereby the long-term holders‘ balances fell by 15% and 26% in 2021 and 2017, respectively, this cycle has seen a decline of 9.8%, indicating less impact on the asset’s value than previous ones.