Bitcoin Long-Term Holders Start Distributing Assets

Long-term Bitcoin holders (LTHs) have started to distribute their assets after accumulating at record levels, signaling a possible shift in the current market cycle. According to CryptoQuant data, LTH supply has recently turned lower, reaching 16 million BTC, while short-term holder (STH) supply remained subdued.

This trend is similar to previous cycles, where experienced investors sell part of their portfolios when prices rise. However, this cycle has developed differently, with a first major price run-up lasting about 31 months, compared to previous cycles which lasted between 8-17 months.

The continued ETF inflows, institutional participation, and persistent whale accumulation likely delayed the next redistribution phase. Nonetheless, LTH supply remains near historical highs, suggesting profit-taking has only begun.

On-chain indicators also support this trend, with the LTH/STH SOPR Ratio falling close to 1, mirroring conditions seen around market bottoms in 2015, 2019, and 2022. This further reinforces the recent slowdown in supply rate from LTHs, suggesting that there are fewer speculative positions remaining within the markets.