Chris Kuiper, vice president of research at Fidelity’s digital asset arm, the long-term holders who have held their coins for a year or more are believed to be the main source of selling. 

However, based on the data cited by Kuiper, long-term holders are currently selling slowly over time, meaning that there is no rush to exit the market. 

As noted by the analyst, many long-term investors expected the leading cryptocurrency to experience a massive rally in October or November based on its historical price action. However, this did not happen, which resulted in frustration. 

Now, some long-term holders are tempted to sell their coins earlier in order to be able to lock in profits.

“But as October’s strong seasonal pattern didn’t hold up and the calendar year is coming to a close, long-term holders are looking to make year-end tax and positional changes, calling it a day with the gains they already have,” Kuiper explained. 

Bitcoin’s positive fundamental developments and lackluster price action continue to diverge, the analyst says.

Who’s buying? 

At the same time, there is still substantial buying from institutional investors, exchange-traded funds (ETFs) and corporations. This demand helps to keep the cryptocurrency afloat. 

Bloomberg’s Eric Balchunas has noted that Bitcoin ETFs managed to attract more than $500 million worth of inflows on Wednesday.

Meanwhile, Samson Mow recently blamed recent Bitcoin buyers for selling Bitcoin to secure lackluster returns after the cryptocurrency severely underperformed earlier this year. Moreover, he claims that this cohort of buyers rushed to sell BTC due to reports of OGs dumping their holdings.