Long-Term Bitcoin Holders Pause Distribution

Wallets holding Bitcoin for at least 155 days have shown a clear slowdown in selling activity. These long-term holders reduced their combined balance from roughly 14.8 million BTC in mid-July to about 14.3 million BTC by December. Recent data, however, indicates that this distribution phase has stalled.

Historically, long-term holders tend to sell during periods of strength and pause when prices approach perceived value zones. Their decision to stop trimming positions is often interpreted as a sign that downside momentum may be weakening. In previous market cycles, similar pauses have preceded short-term relief rallies or consolidation phases.

Ethereum Whales Increase Exposure

As Bitcoin selling pressure cools, Ethereum is seeing renewed interest from large holders. Over the past week alone, addresses holding more than 1,000 ETH collectively added approximately 120,000 ETH to their balances.

These large wallets now control close to 70% of Ethereum’s circulating supply, a share that has been steadily rising since late 2024. The growing concentration suggests that institutional players and high-net-worth investors are positioning for longer-term developments rather than short-term price action. This behavior is often associated with strategic accumulation rather than speculative trading.

Capital Rotation From Metals to Crypto

Market participants have also observed early signs of capital rotating away from precious metals and back into digital assets. Following strong moves in silver, palladium, and platinum, momentum in those markets appears to be fading. As a result, investors may be reallocating capital toward Bitcoin and Ethereum, assets that tend to benefit when risk appetite gradually returns.

Such rotations are common during transitional market phases, particularly when investors seek alternative growth opportunities after commodity rallies lose steam.

Market Sentiment Remains Fragile

Despite these constructive signals, price action remains choppy. Bitcoin has traded within a relatively narrow range between $86,744 and $90,064 over the past seven days. Notably, price spikes during the holiday period coincided with rising fear and uncertainty, reinforcing the tendency for markets to move against prevailing sentiment.

As prices pulled back, traders became more cautious, highlighting the fragile confidence still present across the market.

US-Based Selling Pressure Persists

One ongoing headwind is continued selling pressure from US-based traders.

The Coinbase Bitcoin Premium Index remains in negative territory, signaling weaker demand and elevated risk aversion in the US market. Until this metric stabilizes, short-term volatility is likely to remain a defining feature of price action.

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Speculators sent over 80,000 BTC to exchanges at a loss as BTC/USD hit 15-week lows.

The latest data from blockchain analytics platform CryptoQuant suggests the largest loss-taking sell-off of 2025.

BTC Speculators Sell Below Cost

Bitcoin short-term holders (STHs) — those holding for up to 155 days — appear to have panicked during the latest crypto market downturn.

As BTC/USD dropped below $86,000 on February 25, these speculators sent a massive 79,300 BTC ($7 billion) to exchanges within a 24-hour period.

“This is the largest Bitcoin sell-off of 2025,” CryptoQuant contributing analyst Axel Adler Jr. commented while sharing the data on X.

The chart shows the highest rolling 24-hour loss-making transactions so far this year. While it doesn’t confirm whether users sold the coins sent to exchanges, the data highlights the atmosphere of uncertainty among newer market participants.

“Yesterday’s price drop likely triggered panic selling, and if further corrections occur, similar behavior could reemerge,” fellow contributor Avocado_onchain continued in a “Quicktake” blog post on February 26.

The post analyzed the spent output profit ratio (SOPR) metric, which tracks the ratio of coins moved at a profit or loss on-chain.

STH-SOPR dropped to 0.964 on February 25, marking its lowest level since the peak of the Japanese yen carry trade unwind in August of last year.

“On the other hand, long-term holders have remained largely unaffected by the recent downturn, continuing to hold their assets and providing support against further price declines,” Avocado_onchain observed.

“Nothing to Be Worried About”

Continuing, James Check, creator of the onchain data resource Checkonchain, noted that crossing the $90,000 mark for the STH group would be a key turning point.

“It’s interesting that the support level around $90,000 should hold, but below that, there isn’t much,” he said.

Check also pointed out that “very little” of the BTC supply has changed hands between the old highs and current local lows.

While discussing the panic-driven market behavior of the week, popular Bitcoin figures called for a more composed approach.

For digital asset lawyer Joe Carlasare, the euphoria following Bitcoin’s breakout above its previous all-time highs of $73,800 has skewed perceptions of its potential.

“The panic is palpable. In December, everyone said Bitcoin couldn’t go down. ‘Nation state bid is here, bro!’ Now they think it can’t go up,” he summarized on X.

“Reality? Bitcoin overshoots both ways. Could it go lower? Sure. But this is the buy zone. Nothing to be worried about.”

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