Bitcoin Holders End Major Sell-Off as Market Enters a New Phase

• Long-term holders sold 1.715M BTC at $60K, ending an intense distribution phase and signaling market stabilization
• Bitcoin’s past cycles show accumulation before price surges and heavy selling at peaks, influencing market trends
• LTH supply dropped to 13.2M BTC in early 2025, mirroring past patterns where distribution slows before potential price shifts

According to Axel, Bitcoin’s long-term holders have reduced their positions, distributing 1.715 million BTC from the $60,000 level. The intense distribution phase has ended, and net position change is nearing neutral. Consequently, large-scale selling has halted. 

The period between mid-2019 and early 2021 saw Bitcoin rise from below $10,000 to over $60,000. Long-term holders accumulated Bitcoin during this time; however, in early 2021, as Bitcoin began to approach its peak, long-term holders started to distribute. Selling pressure thus mounted and triggered the correction.

Historical Trends and Market Cycles

Bitcoin had entered an accumulation phase before hitting its all-time price of nearly $69,000 in the mid-to-late 2021. However, soon after hitting that price point, long-term holders started selling off their positions, sending Bitcoin into a downward trend. This selling pressure contributed to the beginning of the 2022 bear market, wherein Bitcoin was already trading at prices below $20,000.

Long-term owners accumulated Bitcoin at reduced prices during 2022. Strong purchasing activity was seen in the statistics, which contributed to market stabilization. Long-term holders of Bitcoin kept adding to their holdings as the cryptocurrency recovered in 2023 and rose above $30,000.

Increased distribution is shown by deep red bars at the end of 2023 and the beginning of 2024. When the price of Bitcoin jumped beyond $60,000, long-term holdings were further reduced. Consequently, the supply of LTH decreased to 14.135 million BTC.

Current Market Situation and Future Outlook

In early 2025, long-term holder distribution remains strong. The LTH supply has dropped further to 13.2 million BTC. Hence, a continued downward trend in net position change signals ongoing selling activity. Moreover, a past net positive change of 15,852 BTC contrasts with this recent decline. This drop aligns with Bitcoin’s price movement, indicating redistribution of holdings.

Additionally, this trend remains consistent with previous cycles. Accumulation has historically preceded price increases, followed by heavy distribution. However, with the net position change stabilizing, Bitcoin may enter a new phase.