Roughly 62,000 Bitcoin, worth about $7 billion at current prices, has moved out of long-term holder wallets since mid-October, according to on-chain analytics firm Glassnode. The movement marks the first notable decline in long-term holdings in the second half of 2025 and adds to the pool of liquid supply that can be traded on exchanges. The shift comes as Bitcoin prices retreat from early October’s record high above $125,000. The token is trading around $113,550, data from The Block shows. Analysts say the renewed availability of coins could make it harder for prices to sustain upward momentum without fresh demand from institutions or retail buyers.
Investor Takeaway
Reduced illiquid supply signals long-term holders are taking profits, increasing sell-side pressure. Without new inflows, Bitcoin’s rally may struggle to regain pace.
Whales Accumulate While Smaller Holders Sell
Glassnode noted that wallets holding between $10,000 and $1 million worth of Bitcoin have seen the largest outflows since November last year. The firm described the trend as “momentum buyers exiting” while “dip-buyers failed to step in with enough demand to absorb that supply.” In contrast, so-called whale wallets—those holding large sums—have been accumulating during the pullback. “Over the last 30 days, whale wallets have grown their holdings, and since October 15th, they haven’t largely sold their positions,” Glassnode said in a post on X. The divergence suggests smaller investors are locking in profits while larger holders continue to build positions, possibly betting on a long-term recovery.
Market Context and Profitability Metrics
Bitcoin’s recent decline coincides with a drop in the share of coins that remain in profit. About 82.3% of the circulating supply is currently in profit, up from a low of 76% in April, but down from levels seen during the October peak. The figure is a key sentiment indicator, as it tracks how much of the market remains above water after price corrections. Traders say that with liquid supply expanding and sentiment cooling, the market may need a catalyst—such as renewed institutional inflows or ETF demand—to resume its upward trajectory. So far, price action has remained range-bound, with volatility easing from the spikes seen earlier in the year.
Investor Takeaway
The balance between whales adding and smaller holders selling could define short-term price direction. Analysts expect Bitcoin to consolidate until stronger spot demand returns.
Long-Term Supply Trends
A report from Fidelity Digital Assets estimates that nearly 42% of all Bitcoin—about 8.3 million coins—could be classified as illiquid by 2032 if current patterns persist. “Over time, the scarcity of bitcoin may become the focal point as more entities buy and hold the asset long term,” the report said. Fidelity added that factors such as nation-state adoption and evolving regulatory frameworks could accelerate that trend, further reducing available supply. For now, however, on-chain data shows that short-term liquidity is rising, a sign that long-term holders are lightening positions after one of Bitcoin’s strongest yearly performances on record. Bitcoin is up roughly 46% year-to-date, boosted by the approval of U.S. spot ETFs and growing mainstream acceptance among institutions. But analysts warn that the recent supply shift could test the resilience of the rally heading into year-end trading.