Bitcoin’s silent exodus hits crypto as long-time buyers cash out
2 min readBitcoin’s most entrenched investors continue to exit positions, amplifying downward pressure on the cryptocurrency’s value.
Despite reaching an all-time high exceeding $126,000 over two months ago, Bitcoin has since retreated nearly 30% and remains volatile. Blockchain data reveals sustained divestment by long-term holders, occurring as market absorption capacity diminishes.
K33 Research indicates 1.6 million coins held for over two years have exited wallets since early 2023—equivalent to approximately $140 billion at current valuations. This reflects persistent selling by veteran investors.
Throughout 2025 alone, nearly $300 billion worth of Bitcoin inactive for more than one year re-entered circulation. CryptoQuant analytics confirm long-term holder distributions over the past month rank among the most substantial in five years.
“We’re witnessing a gradual market erosion,” said Chris Newhouse, Ergonia’s decentralized finance research director. “Persistent spot selling meets shallow liquidity, creating sustained declines unlike the sharp reversals typical of leveraged capitulation.”
Growing institutional demand via exchange-traded funds had previously absorbed this selling pressure throughout the year. However, recent ETF outflows, declining derivatives activity, and reduced retail participation now leave markets vulnerable to continued sell-side momentum.
Pressure intensified after October 10’s historic $19 billion liquidation event following U.S. political developments. Derivatives traders remain sidelined, with open interest for Bitcoin options and perpetual futures still below pre-crash levels according to Coinglass data. Simultaneously, basis trade profitability has evaporated for arbitrage-focused funds.
Wednesday’s brief rally to $90,000—attributed to short covering—proved ephemeral. Prices retreated to $85,278 before stabilizing near $86,000 during Thursday’s Asian trading session.
K33 Senior Analyst Vetle Lunde noted this cycle’s unique characteristics: “Unlike historical patterns fueled by altcoin speculation, current reactivations stem from deep ETF and treasury liquidity enabling early investors (‘OG holders’) to realize six-figure profits. The 2023-2025 period represents Bitcoin’s second-largest long-term supply reactivation after 2017.”
Looking forward, Lunde anticipates easing pressure: “Approximately 20% of supply has reactivated over two years, suggesting OG selling nears exhaustion. We expect net institutional demand to outpace divestment by 2026 as adoption matures.”
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Published on December 18, 2025
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