Galaxy Spots A Major Shift In Long-term Bitcoin Holders

For two years, the earliest bitcoin holders regularly fueled the market by reselling part of their holdings. However, this dynamic has just stopped. In the second quarter, the oldest wallets, inherited from the early days of the network, have almost ceased transferring their BTC. This unprecedented slowdown in selling pressure, highlighted by Galaxy’s on-chain data, could change the market balance. Behind this calmness, a cycle change may be emerging that traditional indicators still struggle to reflect.

A drastic drop in historical token activity in the second quarter

While the battle for bitcoin could be fought around $68,000, the second quarter ends with indisputable statistical metrics that challenge the certainties of technical analysts. The study of the ledgers reveals two major factual signals :

• A near four-year low : according to data published by Alex Thorn, head of research at Galaxy, the movement of dormant bitcoins in the second quarter dropped to its lowest level recorded since the third quarter of 2022 ;
• The decline of Coin Days Destroyed : the analytical indicator of Coin Days Destroyed, which assigns heavier mathematical weighting to units held long-term, shows a rigorously similar contraction over the same period.

To understand the scope of these measures, it is essential to recall the underlying mechanics of these benchmark indicators. Tracking dormant coins and calculating Coin Days Destroyed serve as a standard for specialists to evaluate how intensely long-term investors put their reserves back into circulation.

Historically, any increase in this activity signals an active resumption of sales and distribution orchestrated by large wallets. Conversely, the collapse observed in the second quarter factually confirms that the drying up of transfers from these old addresses is now fully realized on the Bitcoin network.

The historical parallel with the 2017 cycle

This clear drying up of flows is not by chance but marks the explicit end of a very specific distribution cycle. Alex Thorn explains that the previously observed activity peaks were directly driven by the “OGs taking profit”, describing the explicit strategy of early investors who realized their capital gains.

The Galaxy analyst also highlights that this behavioral dynamic reproduces a pattern similar to that observed during the 2017 bitcoin bull market. After maintaining sustained selling pressure throughout 2024 and 2025, these blockchain veterans have apparently completed their arbitrage phase and temporarily ended the unwinding of their positions.

This attitude shift within the long-term investor class reflects a change in their time horizon. By halting their fund outflows to secondary markets, long-term holders make the explicit choice of retention rather than immediate monetization. The direct comparison with the 2017 cycle shows that this shift from active distribution to pure holding usually heralds the end of intense liquidation waves, giving way to a phase where large wallets stabilize their holdings and refuse to sell their coins at current prices.

Major impact on the future of the bitcoin market

The halt in sales by long-term whales profoundly alters the overall financial equation by mechanically limiting the volume of liquid assets. By refusing to reinject their historical reserves on trading platforms, these major players create a powerful supply shock. The supply of bitcoin immediately available for purchase becomes scarce, which prevents the market from having to continuously absorb tens of thousands of coins reintroduced on the spot market. This retention offers a fundamental capital support base because it eliminates the threat of a harsh price rejection caused by massive destocking from origin entities.

This new configuration redistributes initiative to new buyers as well as institutional players. In a context where pioneers no longer sell, even the smallest increase in retail demand or exchange-traded funds faces a much narrower supply wall, which can amplify upward price responsiveness. This drying up of old supply acts as a cleansing filter, freeing bitcoin’s trajectory from the volatility excesses caused by profit-taking by the old guard.

While this slowdown of dormant coins alone does not guarantee an immediate bullish recovery, it removes a systemic risk factor that weighed on the market until now. It is now up to investors to weigh these structural data against ambient macroeconomic uncertainties. Between the constant accumulation of new entrants and the renewed passivity of historical whales, the bitcoin market seems to enter a maturity phase where the patience of veterans could once again serve as a catalyst for upcoming developments.