Bitcoin Long-Term Holders Near End of Major Sell-Off Phase

Bitcoin long-term holders have sold about 20% of supply since 2024, marking a major distribution phase. Analysts expect this sell-side pressure to ease by 2026, with signs of renewed accumulation emerging.

Recent reports indicate that Bitcoin's long-term holders have entered a significant distribution phase, with approximately 20% of the total supply—about 1.6 million BTC—returning to circulation since 2024. This marks one of the largest sell-side events in Bitcoin's history, driven by profit-taking as prices reached new highs and facilitated by deep institutional liquidity from spot ETFs and corporate demand. While some of the reactivated supply is due to technical factors, the majority reflects intentional selling. Analysts suggest this wave of distribution is nearing exhaustion, with expectations that sell-side pressure will subside by 2026, leading to market stabilization and renewed accumulation. Despite the broad distribution, some large holders have resumed accumulation, signaling potential for a market rebound. The current phase is characterized by reduced ownership concentration and the establishment of new cost bases, distinguishing it from previous cycles.