Bitcoin fundamentals hit a new high but stagnate? Institutions are entering the market in large numbers, while early holders are reducing their holdings.

Question

[BitPush] Here is a latest research report on the crypto market, which contains some interesting data worth discussing.

On the surface, it seems that Bitcoin's fundamentals are at historic highs, but there is an interesting phenomenon here—the price performance has actually lagged behind other major asset classes. How do we understand this contradiction?

The signals for institutional entry are very clear. The U.S. government has established a strategic Bitcoin reserve, with national pension funds in Abu Dhabi and Luxembourg allocating 1-3% of their capital to Bitcoin, and even top universities like Harvard have made similar allocations in their large endowment funds. These are all real signals of the traditional financial system moving towards crypto assets.

But at the same time, there is another side - since January of last year, more than 20% of Bitcoin UTXOs held for more than two years have been activated. What does this mean? It means that early long-term holders are selling off in large volumes. Part of this is indeed a natural behavior of taking profits, but on a deeper level, it reflects that as Bitcoin becomes more integrated into the traditional financial system, these initial believers are making their own choices.

Interestingly, even after experiencing these market adjustments, analysis agencies still hold a constructive bullish attitude towards 2026. The reason is quite straightforward - the current price divergence from the fundamentals is itself creating opportunities. Especially considering that the new U.S. government may implement a more accommodative monetary policy, this logic seems to hold water.

AirdropFatigue · Accepted Answer

Why are the old holders selling so fiercely? We later comers need to be careful, Large Investors are reducing their holdings while institutions are entering the market, it&#39;s really just catching a falling knife.

AirdropChaser · Answer

Old holders have run away, and institutions have come in; this trade looks like a dumb buyer taking over.

GateUser-e51e87c7 · Answer

Old holders selling? Then I just laugh, while institutions are dining, retail investors are settling the bill, this script is too familiar.

GweiTooHigh · Answer

The selling off by the old holders this time is indeed a bit bittersweet, indicating that belief cannot stand against reality.

ForkTongue · Answer

Early HODLers are running, institutions are coming in, this is the game. Old suckers know when to take profits, new money is catching a falling knife, the price hasn&#39;t reacted yet.

GateUser-a5fa8bd0 · Answer

Old holders are doing a Rug Pull, institutions are catching a falling knife, this script is old and clichéd.

MysteryBoxBuster · Answer

Old holders are starting to Rug Pull, no matter how strong the fundamentals are, they can&#39;t withstand the selling pressure... Institutions are entering the market, but the selling pressure from early players is the real killer.