Bitcoin Supply Shock: Long-term Holders Halt Sales

Long-term Bitcoin holders have stopped selling their BTC, reducing supply and potentially boosting prices. According to data from Q2 2024, the oldest Bitcoin wallets held by early investors nearly ceased selling their coins in that period, marking the lowest movement of dormant coins since late 2022. This shift ends a two-year period of profit-taking by these holders, reducing the supply of Bitcoin available on exchanges and creating a supply shock.

With fewer coins being sold by long-term holders, the market may see stronger price support and less volatility, potentially paving the way for a more stable or bullish phase. This change mirrors patterns seen in the 2017 Bitcoin cycle and signals a maturing market where veteran holders prefer to retain rather than sell their assets.