Long-term Bitcoin holders have sold $41.6 billion in assets as the cryptocurrency fell below $100,000 for the first time since June, marking one of the largest exits by experienced investors in recent memory. The sell-off comes as miners report their lowest profitability since April and political uncertainty compounds market pressures.

What to Know:

• Seasoned Bitcoin investors have liquidated $41.6 billion worth of holdings during the recent decline, with ancient wallets contributing over $1 billion to the downward pressure.
• Mining operations face a profitability crisis as electricity costs now consume 40-60% of total expenses, forcing miners to sell $172 million in Bitcoin from their reserves.
• Technical analysts identify critical support at $100,000-$101,000, with worst-case scenarios projecting a potential drop to the $70,000-$75,000 range if selling accelerates.

Market Veterans Abandon Positions

The cryptocurrency has declined more than 20% from its October peak above $126,000, triggering substantial selling among investors who typically hold through market volatility. These long-term holders, often considered the most resilient participants in the market, have offloaded holdings at a pace that suggests deeper concerns about near-term price direction.

Crypto analyst PeeCowYay cited the liquidation of ancient Bitcoin wallets as among "significant reasons to support this dip."

The analyst acknowledged missing recent price forecasts, stating he had been "wrong once in five years" after expecting resistance testing near $114,300.

Over $1.3 billion in leveraged positions were liquidated within 24 hours, reflecting the severity of the market deleveraging.

Some buyers have emerged during the decline. Andrew Tate purchased 50 Bitcoin for $5 million, a move highlighted by BTC Treasuries executive Pete Rizzo. The purchase represents a contrarian bet, though broader investor sentiment remains negative.

Mining Operations Face Profitability Squeeze

Bitcoin miners are confronting their worst earnings conditions since April following a $7,000 price drop from $107,000 to $100,000. According to Digiconomist estimates, electricity expenses now account for 40-60% of operational costs.

Elevated network difficulty and reduced transaction fees have compressed margins further, forcing operations to reconsider their strategies.

Mining operations have responded by liquidating holdings, with wallet data showing $172 million in Bitcoin sales. The combination of lower prices and higher costs creates a challenging environment that adds selling pressure to an already strained market. Some analysts view miner capitulation as a potential indicator of market bottoms, though the current cycle has not yet shown signs of stabilization.

Technical Levels Point to Further Downside Risk

Market participants are monitoring critical support zones as the cryptocurrency tests psychological barriers. A break below the $100,000-$101,000 range could trigger additional selling toward $94,000, with some observers projecting potential retracements to $85,000 if pressure persists.

InvestingHaven analysts have identified the $70,000-$75,000 range as a worst-case scenario if key support levels fail. Tyler Richey of Sevens Report and analysts at 10X Research cite these levels as possible destinations under continued selling. Peter Brandt assigns a 25% probability to such a pullback.

Political factors have contributed to market uncertainty. The ongoing government shutdown, described as the longest in U.S. history, has created an unstable policy environment. A failed filibuster vote has added to political turbulence affecting investor confidence. Regulatory uncertainty surrounding digital asset frameworks continues to weigh on sentiment, with market participants awaiting clearer policy direction from Washington.

The correlation between Bitcoin and AI-related trading patterns has emerged as an additional concern for some analysts, though the relationship remains under examination.

Market Terminology

Long-term holders refer to investors who have held Bitcoin for extended periods, typically six months or longer, and are generally considered less likely to sell during volatility. Liquidations occur when exchanges automatically close leveraged positions due to insufficient margin, often accelerating price movements. Network difficulty measures how challenging it is to mine new Bitcoin blocks, adjusting every 2,016 blocks to maintain consistent block times regardless of total mining power.

Final Thoughts

The cryptocurrency market faces multiple headwinds as long-term holders reduce exposure and mining operations struggle with profitability. Whether the current support levels hold or give way to deeper declines depends largely on the resolution of political uncertainties and the willingness of institutional investors to step in at lower prices.