Bitcoin Long-Term Holders Drastically Cut Sales Amid Market Slowdown

The movement of dormant Bitcoin has reached its lowest level in the second quarter since Q3 2022, according to Galaxy's on-chain data. This slowdown in selling pressure may change the market balance and could be a sign that long-term holders are changing their strategy.

Historically, large wallets have fueled the market by reselling part of their holdings. However, this dynamic has stopped, with Alex Thorn from Galaxy noting that 'OGs taking profit', early investors who realized capital gains, have completed their arbitrage phase and temporarily ended the unwinding of their positions.

This shift in behavior reflects a change in time horizon for long-term holders, with them now choosing to retain rather than immediately monetize their coins. This retention provides a strong support base against ongoing demand, as it eliminates the threat of a harsh price rejection caused by massive destocking from origin entities.