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According to blockchain analytics firm Lookonchain, Grayscale has been slashing Bitcoin (BTC) holdings from other ETF managers. On Thursday (04), Grayscale sold 535 BTC on the market, equivalent to approximately US$30.7 million.

Despite this reduction, Grayscale still holds 274,724 units of Bitcoin, valued at approximately US$15.76 billion. And the other managers sold, together, the equivalent of 609 BTC. That is, around US$35 million based on the current price.

The report did not specify the reasons behind these reductions. However, it is important to note that these changes in holdings do not necessarily indicate a bearish market trend. And at the same time, the current drop in Bitcoin’s price is not only due to these factors.

Sale of Bitcoins by ETF managers

Bitcoin’s value has recently taken a sharp plunge, surprising many investors and sparking debate in the cryptocurrency community.

This sell-off appears to be driven by multiple factors, including speculative investors selling Bitcoin ETFs and the halving. The drop in new BTC issuance has affected miners’ profits along with the price drop, which has caused many to sell BTC.

Another factor that led to the losses was the liquidation of overleveraged positions, which reached more than US$ 300 this Thursday. And finally, unexpected sales, such as the liquidation by the German government, which sold around 900 Bitcoins.

These events combined increased the supply of the cryptocurrency, albeit temporarily, at a time of low market demand. The combination of these factors led to significant price drops, which made investors uncertain about BTC’s potential.

On-chain analysis for Bitcoin

Recent on-chain data reveals interesting patterns in BTC’s movement, with approximately $2.4 billion worth of Bitcoin in addresses that are 3 and 6 months old moving during the price drop. This suggests that selling pressure came from entities that bought Bitcoin earlier in the year.

Therefore, this movement tends to come from speculators who entered the market due to the ETF and expectations of the halving, but left after the recent drops. For Richard Rytenband, founder of Convex Research, the big players continue to accumulate.

“We have been seeing strong accumulation signals in both Bitcoin and Altcoins for weeks now, amid a very favorable macroeconomic setup for Bitcoin and a favorable seasonal period,” Rytenband said on his X profile.

Such sellers can be classified as “long-term” holders, but their behavior resembles that of short-term investors. Their moves paved the way for BTC’s sixth major drop since the cryptocurrency bottomed at $15,000 in 2022.

“This is yet another example of the importance of a balanced global portfolio (all asset classes) to carry relevant exposure, without succumbing to the so-called ‘uncle point’ (throwing in the towel either out of necessity or emotional loss of control),” Rytenband added.

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