Long-Term Bitcoin Holders Start Selling Amid Record Accumulation

Bitcoin's long-term holders have been accumulating and holding onto their Bitcoin for an extended period. Recently, they began to change their behavior by selling part of their portfolios, signaling a possible shift in the current cycle.

The LTH supply turned lower after climbing towards 16 million BTC, while short-term holder supply remained subdued. This trend is similar to previous cycles, where experienced investors sell part of their portfolios when prices rise. The first major price run-up was about 31 months long, compared to 8, 17, and 16 months from previous cycles.

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. The movement indicates long-term holders are now acting like participants once again, and thus the cycle is moving into its second distribution phase.

The LTH/STH SOPR Ratio has also fallen close to 1, offering another perspective on the market's current phase. The narrowing profitability gap between long and short-term holders mirrors conditions seen around the 2015, 2019, and 2022 market bottoms, when capitulation and redistribution gradually transitioned into renewed accumulation.