Bitcoin's start to 2026 has been volatile, with prices oscillating between $88,000 and $90,000 after a steep fall from its peak of $124,000. This instability is partly due to long-term Bitcoin holders (LTHs) selling off their assets. According to Glassnode data, LTHs have sold approximately 143,000 BTC in the past month, valued at around $9.5 billion, marking the fastest pace of divestment since August 2025.

The selling pressure from LTHs is significant because these investors typically hold through market fluctuations. The current sell-off reverses a brief accumulation phase observed late last year. This trend adds to the downward pressure on Bitcoin prices, which have already seen a decrease of 6.10% in recent trading.

Despite the selling, Bitcoin's price weakness isn't solely due to LTH behavior. Over 22% of the BTC supply is held at a loss, a level last seen in early 2022 and mid-2018. This situation heightens sensitivity to further price declines, with short-term holders (STHs) being particularly vulnerable. Analysts warn that a failure to hold key support levels could trigger further LTH selling, but institutional buying has so far absorbed much of the selling pressure.

A full-blown Bitcoin crash in the near term appears unlikely, as the market has shown resilience in absorbing the high-intensity sales. Institutional inflows and global liquidity continue to support Bitcoin, though growth is slowing. The market is in a consolidation phase, and a return to liquidity could stabilize prices. Investors should monitor institutional buying trends and macroeconomic factors, such as the Federal Reserve's rate decisions, for further signals.