Bitcoin's High-Conviction Holders Sell Off Assets Amid Price Decline

Analysts at Compass Point are warning that Bitcoin's price may be experiencing a significant downturn, as its highest-conviction holders begin to sell off their assets.

A recent report from the firm highlighted that long-term holders of Bitcoin, defined as those who have held onto their coins for at least 155 days, have become sellers in recent weeks. This could signal the end of the ongoing crypto slump, according to Compass Point analyst Ed Engel.

Over the past two days, these long-term holders have sold approximately $2.4 billion worth of Bitcoin, which has had a significant impact on the cryptocurrency's supply and demand balances. This selling pressure has contributed to Bitcoin's price dropping to new lows.