Bitcoin ongoing price movement has sparked intense analysis as it continues to hover below the $100,000 mark. Despite reaching an all-time high above $108,000 last week, the cryptocurrency has struggled to maintain upward momentum ever since.

With this performance, BTC’s on-chain data has been brought to the spotlight to uncover the factors driving recent selling pressures and investor behavior. One key focus has been the Spent Output Age Bands (SOAB) indicator, which provides valuable insights into Bitcoin holders’ activity based on their holding periods.

Who Cashed Out Their Bitcoin Gains?

According to a CryptoQuant analyst known as Yonsei Dent, data reveals that Bitcoin investors who bought their holdings between six to twelve months ago were the most active sellers during the recent price surge.

This group largely entered the market during the initial excitement surrounding the launch of spot Bitcoin exchange-traded funds (ETFs) earlier in the year. While this selling activity exerted downward pressure on Bitcoin’s price, the asset has managed to stabilize within the $90,000–$100,000 range.

Interestingly, long-term holders, defined as those holding Bitcoin for over a year, have shown minimal selling activity. Historical trends suggest that these seasoned investors are likely anticipating elevated price levels before considering substantial profit-taking.

Meanwhile, Dent pointed to the Binary Coin Days Destroyed (CDD) metric showing a noticeable decline in older Bitcoin being moved in December compared to November. Historically, reduced activity from long-term holders during price corrections often signals market resilience and potential for future upward momentum.

The analyst wrote:

The ‘Binary CDD’ indicator at the bottom of the chart shows a decline in the selling of older Bitcoin in December compared to November. This suggests that many long-term holders may anticipate even higher prices before selling.

Binance Reserves Signal Market Confidence

Speaking of higher prices, another crucial metric suggesting a significant move brewing for Bitcoin comes from Binance’s Bitcoin reserves, which have been steadily declining since August.

CryptoQuant analyst Darkfost highlighted that Binance’s reserves recently hit their lowest level since January. This trend is significant because a similar decline earlier in the year preceded a 90% surge in Bitcoin’s price.

The reduction in exchange reserves typically indicates that investors are moving their Bitcoin holdings away from centralized exchanges and into private wallets.

Such behavior suggests reduced selling pressure and a preference for long-term holding strategies. Historically, declining reserves on exchanges have often aligned with periods of strong market optimism and price rallies.

Notably, as BTC currently still trades at a price of $95,567 down by 2.7% in the past day, the confluence of these factors—long-term holder confidence, reduced activity from older wallets, and declining exchange reserves—presents a cautiously optimistic picture for Bitcoin’s near-term trajectory.

However, it is cautioned that sustained buying activity will be required to break through psychological resistance levels and maintain upward momentum.

Featured image created with DALL-E, Chart from TradingView

Strive Asset Management, led by Vivek Ramaswamy, is filing with the SEC on its “Strive Bitcoin Bond ETF.”  Exposing investors to the convertible bonds by MicroStrategy with a more crypto-friendly regulatory landscape with Trump admin. The firm offering less volatile access to Bitcoin also holds U.S. Treasuries for liquidity.

Strive Bitcoin Bond ETF

Strive Asset Management, run by Vivek Ramaswamy, is filing with the SEC on a “Strive Bitcoin Bond ETF.” The 485A filing suggests investment landscapes shift from the old “follow the money” to new “follow the Bitcoin.”

The proposed ETF is going to offer access to MicroStrategy’s convertible bonds, which have become so popular due to the potentially more favorable regulatory climate under the new administration.

This is an important step by Strive as digital assets are gaining popularity in the financial world. The demand for MicroStrategy’s bonds that convert into stocks based on Bitcoin’s performance has been strong broader market for Bitcoin-related investments.

There is also an expectation that following Donald Trump’s recent election victory, regulatory hurdles may ease for digital assets and more institutions will look at crypto-related financial products at ease.

Matt Cole, CEO of Strive Funds, has been open about the strategy of the fund, pointing out that he is going to focus on vehicles that would be best suited by having a digital asset-friendly administration. His comments give an insight into what might be expected in 2025.

Investment Strategy and Objective

Strive Bitcoin Bond ETF strategy lies investment in what they describe as “Bitcoin Bonds.” These are convertibles from a company such as MicroStrategy that happens to plough large proportions of the proceeds of bonds into Bitcoin.

The use of derivative instruments by this ETF will enable to managing their exposure in these securities.

The main objective of this fund is to replicate Bitcoin for investors through these Bitcoin Bonds and derivatives, allowing the investor to have less volatile exposure to the cryptocurrency without having to own it.

The fund will invest in U.S. government securities, primarily Treasuries, to ensure liquidity and support its derivative positions. It may also invest in other investment companies specializing in Bitcoin-related financial instruments to diversify its approach to capturing the potential of Bitcoin.

It indicates the growing acceptance of bitcoin in traditional finance and thereby has portrayed a strategic change towards digital assets that will help redefine how investment strategies get built.

With Ramaswamy’s background opposition to corporate governance norms as well as his firm, which opposes ESG; this particular ETF might find investors who are looking out for non-traditional options which highlights the Bitcoin’s aspects.

As 2025 begins, this kind of ETF could set up a trend that encourages broader crypto integration into investment portfolios.

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