Bitcoin is trading above $70,000 as the market stabilizes following a sharp sell-off that briefly pushed its price below $60,000 last Friday. On-chain data reveals long-term holders reduced their exposure at the fastest pace since December 2024, with a net position change of -245,000 BTC last week. Despite this selling, the total supply held by these long-term investors increased in 2026, suggesting a repositioning and potential accumulation of Bitcoin perceived as discounted.
Bitcoin is trading above $70,000 as traders attempt to stabilize price action after a sharp sell-off. The decline briefly pushed BTC below $60,000, erasing nearly $10,000 in a single session last Friday.
Onchain data shows long-term holders recorded their largest daily outflow since December 2024. The net position change over 30 days reduced exposure by 245,000 BTC last Thursday, marking a cycle-relative extreme.
Similar distribution spikes appeared during corrective phases in 2019 and mid-2021. During those periods, prices consolidated rather than transitioning into sustained downtrends.
Meanwhile, data shows total long-term holder supply rose to 13.81 million from 13.63 million BTC in 2026. This divergence indicates supply continues to age into long-term status as short-term holders reduce trading activity.
The long-term holder spent-output profit ratio regained a position above 1 on Monday. This signals recovery after a period of realized losses, with Bitcoin above the overall realized price of $55,000.
Macroeconomic factors may remain the main driver of near-term volatility. January U.S. Consumer Price Index data is due Wednesday amid elevated policy uncertainty.
Markets currently assign 82.2% odds of no rate cut at the March Federal Open Market Committee meeting, according to CME FedWatch. This reflects persistent inflation pressure and a restrictive policy outlook.
Uncertainty around Kevin Warsh’s anticipated appointment as the US Federal Reserve chair has added pressure. Elevated treasury yields and tight financial conditions continue to pressure risk assets, with the US 10-year yield holding near 4.22%.
