Crypto Correction Driven by Long-Term Holder Rotation, Not Bearish Reversal
The post Crypto Correction Driven by Long-Term Holder Rotation, Not Bearish Reversal appeared com. BitcoinEthereum Bitcoin and Ethereum extended their weekly declines on Tuesday, with BTC trading near $92,000 and ETH around $3,000, reflecting a broader risk pullback across crypto markets. Key Takeaways: Bitcoin trades near $92K and Ethereum near $3K after a sharp weekly decline. The sell-off is mainly driven by short-term holders panic selling and deleveraging. Long-term investors and institutions are still buying, indicating redistribution rather than exit. Bitcoin has dropped more than 13% in the past week, while Ethereum is down roughly 16% over the same period. On-chain analytics firms say the current drawdown is being driven mainly by short-term holders exiting positions, not by long-term investors abandoning the market. At the same time, long-term holders remain active, creating a rotation effect that increases volatility without signaling a breakdown in the overall uptrend. On-Chain Data Indicates Redistribution, Not Exit Recent wallet activity points to continued participation from long-duration investors and newly entering institutional buyers. Coins are moving between types of long-term holders rather than leaving the ecosystem entirely. This rotation began earlier in the year when long-standing Bitcoin holders started selling into strength. Unlike previous cycles, the selling has coincided with consistent inflows from ETFs, corporate treasuries, and traditional finance entities, preventing the kind of liquidity vacuum typically associated with macro market tops. This dip is just long-term holders rotating among themselves. Old Bitcoiners are selling to tradfi players, who will also hold for the long run. The reason I predicted the top early this year is that OG whales were dumping hard. But the market structure has changed. ETFs, MSTR Ki Young Ju (@ki_young_ju) November 17, 2025 Current Pullback Consistent With a Mid-Cycle Correction Analysts attribute Bitcoin’s decline from $126,000 to a combination of short-term holder capitulation and routine profit-taking by long-term investors. New buyers continued to enter.
