Bitcoin’s long-term holder activity is showing a shift. According to data from Glassnode, around 62,000 BTC, worth about $7 billion, have moved out of long-term, inactive wallets since mid-October. This is the first time in the second half of 2025 that Bitcoin’s long-term holdings have seen a noticeable drop.
Illiquid supply basically means Bitcoin that stays untouched for a long time—coins held by people who rarely move or sell them. When this supply starts falling, it signals that more Bitcoin is being brought back into circulation. With more coins available to trade, prices can struggle to move higher unless fresh buying demand steps in.
Bitcoin’s price has fallen from its record high of over $125,000 in early October to around $113,550, according to data from CoinMarketCap. Glassnode wrote on X that “Illiquid $BTC supply has started to decline, with roughly 62,000 BTC moving out of long-term, inactive wallets since mid-October. When illiquid supply falls, more coins are available to trade, which can make it harder for price to trend without strong new demand.”
Breaking the bullish trend
Glassnode said this decline breaks the trend that supported much of Bitcoin’s bullish cycle. Similar pullbacks in the past have often cooled price momentum. For example, in January 2024, around 400,000 BTC left long-term wallets—a much bigger outflow that was followed by a slowdown in market activity.
But this time, not everyone is selling. Large investors, or whales, seem to be moving in the opposite direction. “What’s interesting is that whale wallets have actually been accumulating during this phase,” Glassnode said. Over the last 30 days, these wallets have increased their holdings and have not sold significantly since October 15.
Smaller wallets drive selling pressure
Glassnode’s data shows that wallets holding between 0.1 and 10 BTC, roughly $10,000 to $1 million in value, are the ones leading the selling activity. This group has been steadily reducing its holdings since November 2024.
“Momentum buyers have largely exited, while dip-buyers failed to step in with enough demand to absorb that supply,” Glassnode noted. “With first-time buyers flat, this imbalance is pressuring prices until stronger spot demand returns.”
Long-term scarcity still intact
A report by Fidelity Digital Assets maintains that Bitcoin’s long-term scarcity remains a strong narrative. It projects that by Q2 2032, about 42% of all Bitcoin, or 8.3 million BTC, will be considered illiquid if current patterns continue.
The report adds, “Over time, the scarcity of bitcoin may become the focal point as more entities buy and hold the asset long term.”
Bitcoin is currently trading around $113,000, up 3.5% in the past 24 hours, as traders watch whether new demand will return to support the next price move.
Also Read: Bitcoin Could Still Crash 50% Even With Wall Street Support: Tom Lee
