The relentless selling of cryptocurrencies continues as Bitcoin (BTC) slides towards its low for the year of $60,000 U.S.
Early on June 4, Bitcoin’s price was trading at $62,150 U.S., having fallen another 5% over the past 24 hours. BTC has now fallen nearly 25% in the past month as the selloff accelerates.
In a troubling sign, analysts say the selling has now spread to the highest conviction holders of cryptocurrencies.
In the past two days, Bitcoin’s highest-conviction holders have sold $2.4 billion U.S. of BTC as sentiment turns increasingly negative.
Many high-conviction holders have become sellers after the crypto treasury company Strategy (MSTR) sold some of its Bitcoin holdings for the first time in four years.
Analysts note that of the Bitcoin sold over the past 30 days, 26% came from investors who bought it above $90,000 U.S., meaning they are selling at a loss based on the current price.
Long-term crypto holders, defined as those who held onto their tokens for at least 155 days, or about five months, were largely inactive from February to April but have now returned.
Investors are growing increasingly nervous about the prospects for crypto, with Bitcoin’s fear gauge jumping 20% higher earlier this week amid ongoing selling pressure.
Bitcoin has struggled as uncertainty around the Iran war and the prospect of interest rates increasing later this year has kept crypto under pressure.
At the same time, Bitcoin exchange-traded funds (ETFs) have registered their 12th day in a row, and longest streak ever, of net outflows.
A total of $22.8 billion U.S. has been extracted from Bitcoin ETFs since May 14 of this year, according to market data.
Already this week, the price of BTC has declined 12%. Some analysts say it is a sign of capitulation before a rebound in cryptocurrency prices.
Others warn that more declines could be ahead for Bitcoin and other digital assets. Prediction markets are betting that BTC falls to $50,000 U.S. during the current downturn.
Bitcoin previously hit a low of $60,000 U.S. in February of this year before staging a tentative recovery in March and April.
