TLDR
- Bitcoin currently trades above $107,000 after dropping 3.9% from its $111,000 all-time high
- On-chain data shows long-term holders are selling while new investor participation remains low at around 20%
- Large holders continue accumulating Bitcoin while retail investors stay on the sidelines
- US-China trade war fears have triggered crypto market corrections with altcoins falling 3-8%
- Historical data suggests current new investor participation is well below levels seen at previous market tops
Bitcoin is currently trading above $107,000 following a recent drop from its new all-time high above $111,000. The 3.9% decline from the peak still leaves BTC with gains of over 10% in the past 30 days.
Market attention has shifted from price movements to on-chain data analysis. Analysts are focusing on the behavior patterns of different investor groups.
On-chain analyst Avocado Onchain examined Unspent Transaction Output (UTXO) data to assess current investor trends. The analysis aimed to determine whether Bitcoin’s rally can continue without fresh capital from new market participants.
The findings reveal that older coins are being sold while new investor inflows remain low. This pattern has historically limited momentum in previous market cycles.
UTXO age distribution data shows that much of Bitcoin’s supply remains with holders who have kept their assets for over six months. The 6-12 month age band has increased, indicating many participants fall into the mid to long-term holding category.
Long-Term Holder Behavior Shifts
When the proportion of long-term holders starts to shrink, it often precedes major price cycle tops. This occurs due to a transition of coins from long-term holders to new investors.
Despite Bitcoin reaching new highs, the percentage of UTXOs held by investors with less than one month holding period remains well below historical thresholds. These levels typically appear near previous market tops.
During earlier bull cycles, new investor participation often surged past 50%. Currently, that figure sits around 20%, which is lower than peak levels during this recent rally.
Without increased participation from newer investors, the market may struggle to maintain upward momentum. This represents a key difference from previous bull market patterns.
Large Holder Accumulation Continues
While retail inflows appear lacking, large-scale accumulation continues in the background. Bitcoin addresses holding between 1,000 and 10,000 BTC, excluding exchanges and miners, have been steadily increasing.
Large holders are accumulating.
Addresses holding 1K–10K BTC (excl. exchanges & miners) are rising, a sign of growing investor confidence.
Historically linked to higher prices. pic.twitter.com/vCCml3GfHB
— CryptoQuant.com (@cryptoquant_com) May 29, 2025
These entities are often associated with institutional investors or long-term strategic holders. Their accumulation is interpreted as growing confidence in Bitcoin’s long-term prospects.
The divergence between institutional and retail behavior creates an interesting market dynamic. Large holders are buying while smaller investors remain cautious.
Trade War Fears Impact Markets
US Treasury Secretary Scott Bessent confirmed that US-China trade talks have stalled. This development has added to global market uncertainty and triggered crypto market corrections.
The US Appeals Court’s decision to reinstate Trump’s reciprocal tariffs has further increased market volatility. Both developments have created macro-economic headwinds for risk assets.
🚨 BREAKING: A federal appeals court allows Trump’s tariffs to stay in effect for now – after a trade court ruled them "unlawful." The legal battle continues, with a possible Supreme Court appeal. pic.twitter.com/e6UGGzYqDZ
— Trader Edge (@Pro_Trader_Edge) May 30, 2025
Altcoins have corrected more than Bitcoin during this uncertainty. Ethereum dropped 3%, while other altcoins like ADA, SUI, and XRP corrected 3-5%.
Dogecoin experienced the largest decline, dropping more than 8% during the selloff. The crypto market witnessed $680 million in liquidations over 24 hours according to Coinglass data.
The US Appeals Court’s decision to reinstate Trump’s reciprocal tariffs remains subject to potential Supreme Court review, though acceptance of such cases is not guaranteed.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
