Bitcoin (BTC) has slipped back under the $100,000 mark in the past 24 hours, triggering concerns about its short-term direction. While Bitcoin has experienced remarkable growth over the past few months, recent on-chain data suggests that long-term holders, or “OGs,” may be contributing to the current price dip. These long-term holders, defined as Bitcoin investors who have held their assets for over 10 years, have begun moving their tokens, potentially signaling a desire to take profits as the price reaches new all-time highs.

Bitcoin OGs Begin Cashing Out

According to Crypto Quant Head of Research, Julio Moreno, the recent decline in Bitcoin’s price can be partially attributed to the behavior of these long-term holders. Moreno highlighted a significant trend in the 30-day cumulative spending of Bitcoin coins that have been held for over 10 years. The on-chain data shows that these veteran Bitcoin investors, who were previously considered “diamond hands,” have started transferring a substantial number of their holdings. This large-scale movement of coins by investors who have been holding them for over a decade suggests that some OGs may be looking to cash out their investments after a long wait.

The Indicator Behind the Trend

The metric in question tracks the movement of coins held for 10 years or more. Statistically, Bitcoin investors who have held their coins for such long periods are considered long-term holders (LTHs), with their resolve generally growing stronger the longer they hold. Typically, once coins age past the 155-day mark, the likelihood of them being sold diminishes significantly, and holders are less likely to sell them under normal circumstances.

However, a rise in activity from these holders could indicate a change in sentiment. The recent surge in selling from these veteran holders during Bitcoin’s rally may suggest they are ready to lock in profits after a prolonged period of waiting. Although many long-term holders are committed to holding their coins, the current price surge to over $100,000 could have been enough to entice them to sell.

The Role of Lost Coins

Interestingly, not all of the coins that have aged past 10 years are necessarily in active circulation. Some of these coins may have been lost due to forgotten wallets or misplaced private keys. These lost coins are effectively removed from the circulating supply, though some may be rediscovered in the future. As such, while many long-term holders are likely to be selling their Bitcoin now, others may not have voluntarily chosen to part with their coins.

In addition, it’s important to note that Bitcoin coins that have been sitting idle for such long periods are statistically more likely to be lost, as opposed to being actively Hold. Nevertheless, the coins being moved in recent days likely belong to those who still have access to their wallets and are now willing to sell due to the asset’s new price levels.

Bitcoin’s Pullback and Price Action

Just before the recent pullback, the 30-day cumulative spending of 10+-year-old coins reached an eye-popping near-$1 billion, which coincided with Bitcoin’s price dipping below the $100,000 mark. This suggests that the selling activity from these long-term holders may have contributed to the recent correction.

At the time of writing, Bitcoin is trading at approximately $97,700, marking a 5% decline in the past 24 hours. While the cryptocurrency still remains well above its previous all-time highs, the short-term pullback may serve as a natural response to the heavy selling pressure from those looking to take profits.

The Larger Picture: OGs and Market Cycles

This kind of market activity from long-term holders is not uncommon during periods of significant price appreciation. The recent rise in Bitcoin’s price has been driven by strong institutional interest, regulatory clarity, and widespread adoption, leading many investors to speculate that this rally could continue. However, veteran Bitcoin investors who have seen multiple market cycles may feel it’s a good time to secure some profits, especially when Bitcoin reaches psychological price points like $100,000.

Historically, Bitcoin has gone through several major price cycles, with early investors often taking profits during times of price exuberance. These sales by long-term holders—who have typically weathered the volatility of the market—are often seen as a natural part of the maturation of an asset class.

Conclusion: What’s Next for Bitcoin?

The fact that long-term holders are beginning to sell their Bitcoin at the $100,000 level could signal a short-term top, but it doesn’t necessarily spell the end of the bull market. The ongoing interest from institutions and retail investors suggests that Bitcoin still has a bright future ahead. However, short-term corrections like the one currently underway are a normal part of market cycles and could provide an opportunity for new buyers to enter the market at a lower price point.

As the market continues to evolve and more institutional investors get involved, Bitcoin’s price trajectory will likely depend on a complex mix of investor sentiment, macroeconomic conditions, and the broader adoption of cryptocurrencies. The pullback under $100,000 might be a temporary setback, but it’s unlikely to derail Bitcoin’s long-term growth prospects. For now, investors will be watching closely to see whether the OGs’ profit-taking marks the start of a larger price correction or simply a momentary pause in an otherwise bullish trend.