Bitcoin’s long-term holders distributed $300 billion in BTC in 2025, signaling a historic supply reset. Heavy selling near cycle peaks or transitions is not unusual. With selling pressure easing, the next phase may depend on how early long-term holder supply stabilizes. A historic unwind led to Bitcoin’s 2025 volatility.

Nearly $300 billion worth of Bitcoin that had been dormant for over a year re-entered circulation in 2025. Long-term holder supply decreases have historically accompanied Bitcoin trend shifts. Heavy LTH selling preceded recovery in 2018 and expansion in 2020–2021. Price strength tends to fade as long-term holders distribute.

In 2024–2025, supply declined as long-term holders distributed, leading to price weakness. The final phase in 2025 saw a sharp decline in long-term holder supply, signaling a reset. A pause in selling since December suggests a potential transition phase. Supply stabilization may lead to a base-building period.

The long-term/short-term holder supply ratio dropping to –0.5 or below historically precedes Bitcoin base-building or rallies. The ratio fell to about -0.53 in December 2025, leading to compressed price volatility. Aggressive distribution followed by supply stabilization typically indicates transition phases. Potential rally may emerge later in 2025.

Read more at Cointelegraph: Bitcoin’s Next Parabolic Rally Hinges On A Key Data Point