Bitcoin Reclaims $70K Despite Record Long-Term Holder Selling

Bitcoin (BTC) is trading above $70,000 as traders attempt to stabilize price action following the sharp sell-off last Friday, which briefly pushed BTC below $60,000. Onchain data Glassnode shows long-term holders (LTHs) reduced exposure at the fastest pace since December 2024, a cycle-relative extreme. However, the total supply held by long-term investors continued to rise in 2026, according to CryptoQuant data.

This divergence may indicate traders repositioning during what they believe are discounted conditions. Consequently, the long-term holder spent-output profit ratio (SOPR) has regained a position above 1, signaling recovery after a period of realized losses.

Macroeconomic factors currently dominate near-term risk, with January U.S. Consumer Price Index data due Wednesday. Markets currently assign 82.2% odds of no rate cut at the March Federal Open Market Committee meeting, according to CME FedWatch. Meanwhile, uncertainty around the anticipated appointment of a new Federal Reserve chair has added pressure to risk assets.

Elevated treasury yields and tight financial conditions continue to pressure markets, with the US 10-year yield holding near multi-month highs. Periods of high real yields have coincided with lower crypto liquidity and muted BTC spot demand. Consequently, the US dollar index (DXY) remains a key source of volatility for Bitcoin after dropping below 97.

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