Increase in Bitcoin Long-Term Holder Turnover May Alleviate Selling Pressure and Reduce Resistance to Future Price Rises

On-chain analyst Murphy stated that from October 7 to 8, long-term Bitcoin holders transferred approximately 32,000 BTC to exchanges, marking the second-largest single-day inflow since the significant drop on February 5 of this year. During the same period, wallets associated with the U.S. government transferred about 17,200 BTC to Coinbase Prime. Given the platform's official custody and trading services, these transfers do not necessarily indicate selling. Excluding this portion, the potential selling pressure amounts to around 14,800 BTC, primarily from long-term holdings aged 6 to 12 months and 3 to 5 years. Murphy pointed out that the average coin age of long-term holders' coins spent on October 8 reached 712 days, up from 651 days on July 14, indicating that earlier holdings are gradually participating in turnover. He believes that the distribution by long-term holders during the transition phase between bull and bear markets is not necessarily bearish; the periodic release of selling pressure can aid in the redistribution of holdings, with the key being whether market demand can effectively absorb the supply. If new funds can digest the supply, sufficient turnover may actually reduce resistance for future market movements.

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