Bitcoin’s Long-Term Holders Ease Selling as Dormant Coin Activity Plumbs 4-Year Low
Recent research reveals that Bitcoin movement from long-dormant wallets has declined to levels unseen since mid-2022, signaling that early holders are reducing their distribution after a period of elevated profit-taking.
Dormant Bitcoin Activity Reaches Multi-Year Nadir
Long-term Bitcoin holders have significantly scaled back their selling activity, with dormant coin movement in recent months hitting its lowest point since the third quarter of 2022. According to research shared by Alex Thorn, Galaxy’s head of firmwide research, this slowdown represents a major shift in distribution patterns among Bitcoin’s earliest participants. Related onchain metrics tracking the age and movement of spent coins have tracked downward in tandem, reinforcing the trend.
The Profit-Taking Cycle Appears to Be Cooling
The reduction in activity from established Bitcoin investors marks a departure from the elevated selling witnessed throughout 2024 and 2025, when what researchers describe as “original” participants capitalized on favorable price conditions. Thorn noted parallels to similar behavior observed during Bitcoin’s 2017 bull run, when long-term holders distributed holdings amid climbing valuations. The current slowdown suggests these investors have largely completed their recent profit-taking cycles and are now adopting a more passive stance with their holdings.
Dormant coin movement serves as a barometer for holder sentiment by tracking Bitcoin that remains inactive in wallets before eventually being transferred. The metric carries particular significance because sustained activity from established participants historically corresponds with periods of intense selling pressure and profit realization. Conversely, periods of dormancy can indicate conviction among long-term holders who choose to maintain their positions rather than exit positions.
What This Means for Crypto Markets
The pullback in OG selling pressure carries implications for Bitcoin price dynamics and broader market sentiment. When early adopters remain patient with their holdings, it typically reduces downward pressure on price levels and can signal confidence in medium-to-long-term valuations. The shift from heightened distribution to more restrained activity may indicate that major holders believe current price levels are below what they anticipate over coming periods, reducing the urgency to capture available liquidity.
This cooling in distribution from Bitcoin’s most established constituency could provide breathing room for price stability and potentially support conditions favorable for network growth and institutional confidence. As long-term holders exhibit patience, the broader crypto ecosystem may benefit from reduced overhead selling that has characterized recent years.
Source: Alex Thorn / Galaxy, via Cointelegraph. Not financial advice.