Bitcoin’s price has remained resilient, hovering above key support zones despite noticeable profit‑taking by long-term holders (LTHs). Crucially, on‑chain data indicates that the broader market is effectively absorbing this distribution, hinting at a healthy transition from legacy capital to fresh demand—a factor solidifying Bitcoin’s medium-term momentum.
Recent Glassnode data show that realized profits—gains booked by LTHs—have spiked, with older cohorts cashing out as BTC surpasses recent highs ([turn0search5]). Analysts from RootData report more than $1.3 billion in profit-taking; outflows from holders with 3–5 year coins stood at roughly $849 million, and those holding 7–10 years recognized around $485 million worth of gains.
Charles Edwards of Capriole Investments observed that longstanding holders have been unloading during the rally, a move partially counterbalanced by increased accumulation from newer cohorts. He noted:
“The amount of BTC acquired in the last two months by [short‑term] holders has completely consumed all of the BTC unloaded by LTHs over the last 1.5 years.”
Thus far, this dynamic has kept Bitcoin price relatively stable within the $100 K–$110 K range, resisting deeper corrections despite consistent selling by LTHs.
While long-term holders sell into gains, data from CryptoQuant shows renewals of accumulation by newer participants. Long-term holder supply grew by 800,000 BTC over 30 days, a record level, indicating strong underlying buying despite intermittent profit booking.
Additionally, younger cohorts (1–2 year holders) have been particularly active, absorbing coins unloaded by LTHs and reinforcing a rotation of capital from old guard to fresh investors.
Despite significant LTH sales, BTC price action remains range-bound—rather than declining sharply—suggesting that the market is absorbing transfers smoothly. Glassnode observed that coins are being unloaded into steady bids rather than sparking panic. They concluded that “HODLing appears to be the dominant market mechanic” and that the upward price momentum has yet to be disrupted.
RootData analyst Yonsei Dent remarked that this redistribution is “net positive,” signaling a healthy handover of supply rather than structural weakness.
This transition is emblematic of Bitcoin’s maturation.
- Old money recycles gains: LTHs cash in profits, realizing gains of 200–300% typical of late-cycle stages.
- New money fortifies capital: Shorter-term buyers accumulate, often at cost-basis levels that support current price floors.
- Balanced dynamics: With selling matched or outpaced by accumulation, the market remains in equilibrium, not left exposed.
As one analyst described, “Bitcoin quickly absorbs selling”, indicating that structural demand is keeping pace with profit-taking supply.
Complementary metrics reinforce this constructive tone:
- Unrealized gains among holders are near $1.2 trillion—approaching cycle highs—with most investors still in profit territory.
- The outflow/inflow ratio (coins moving off exchanges vs into them) is at 0.9, mirroring mid‑2022 pre‑rally levels—an accumulation signal .
- Institutional accumulation continues, with over 19,000 BTC transferred into cold‑storage, suspected treasury or pact addresses, suggesting intent to HODL.
With LTHs rotating out and STHs stepping up, Bitcoin remains in a consolidative phase rather than a correction. Analogous movements were seen during past bull cycles, wherein profit-taking coincided with fresh accumulation—setting the stage for further upside.
July is historically a bullish month, and analysts expect BTC to track broader risk-on cues, possibly breaking out if institutional or retail inflows intensify.
We may now be entering a phase where “old guard exits, new guard enters,” maintaining price levels while refreshing liquidity composition.
- LTH supply trends: Will long-term holders continue to sell, or have they peaked?
- STH and mid-term activity: Continued buy-side rotation by newer cohorts would reinforce price support.
- Exchange flows: Sustained outflows suggest accumulation, while inflows to exchanges indicate liquidation risk.
- Macro cues: July’s equity performance, Fed signaling, and ETF inflow data could ignify symmetry or divergence in BTC’s path.
Bitcoin’s price holding steady above $100 K, despite long-term holder profit-taking, speaks to a maturing ecosystem. Instead of capitulation, these dynamics suggest a structural handoff—old units are sold, replaced by new capital more receptive to long-term accumulation.
If this balanced turnover continues, BTC may be well-positioned for further gains later in 2025, driven not by speculation, but by evolving participation from diversified cohorts. The coming weeks will reveal whether the market absorbs these rotations and prepares for a new bullish leg—or if a misbalance prompts a correction.
Let me know if you’d like detailed charts—such as LTH vs. STH supply trends, exchange flow profiles, or ETF flow overlays—to augment this narrative.