Bitcoin’s long-term holders are starting to move their coins. Data from Glassnode shows that about 62,000 BTC, worth nearly $7 billion, have left long-term inactive wallets since mid-October. It is the first major decline in long-term holdings in the second half of 2025.
The decline in long-term or “illiquid” supply means more Bitcoin is back in circulation. When this happens, prices can face pressure unless new buyers step in. Bitcoin has fallen from its early October record of over $125,000 to around $113,550, according to CoinMarketCap.
Glassnode wrote on X that, “Illiquid $BTC supply has started to decline, with roughly 62,000 BTC moving out of long-term, inactive wallets since mid-October. When illiquid supply falls, more coins are available to trade, which can make it harder for price to trend without strong new demand.”
The data firm noted that this change breaks the trend that supported much of Bitcoin’s bullish cycle. A similar situation occurred in January 2024 when 400,000 BTC left long-term wallets, followed by a slowdown in price momentum.
Although not all investors are selling, large holders, known as whales, have been accumulating more BTC to increase their Bitcoin balances over the past 30 days and have not sold much since October 15.
Meanwhile, smaller investors, with wallets holding 0.1 to 10 BTC, are leading the current selling pressure. Glassnode said, “Momentum buyers have largely exited, while dip-buyers failed to step in with enough demand to absorb that supply.”
Despite this short-term weakness, long-term scarcity remains strong. Fidelity Digital Assets projects that by 2032, about 42% of all Bitcoin, or 8.3 million BTC, could remain illiquid if current patterns hold.
Bitcoin is now trading near $113,000, up 3.5% in the past 24 hours, as traders wait for stronger demand to drive the next move.
Also Read: BNB Chain Burns $1.2B Worth of Tokens in 33rd Auto Burn
