Bitcoin is facing renewed pressure as long-term holders continue to offload large volumes of coins into a weakening market, according to new on-chain data from multiple analytics firms.
Data from K33 Research shows that in 2025 alone, nearly $300 billion worth of previously dormant Bitcoin has re-entered circulation.
Much of this supply comes from coins that had not moved for years, signaling a significant shift in behavior among long-term holders who are typically seen as the market’s most conviction-driven participants.
The renewed selling comes more than two months after Bitcoin hit a record high above $126,000. Since then, the token has fallen nearly 30%, struggling to establish firm support levels amid declining liquidity and weaker demand.
Analysts say persistent distribution from long-term holders is emerging as a key factor behind the downturn.
According to CryptoQuant, the past 30 days have marked one of the heaviest periods of long-term holder distribution in more than five years.
Historically, similar waves of selling were often absorbed by strong inflows into spot Bitcoin exchange-traded funds (ETFs), as well as sustained buying from crypto-focused investment firms.
That dynamic, however, appears to be shifting. Spot Bitcoin ETF flows have recently turned negative, derivatives trading volumes have declined, and retail participation has weakened.
With fewer large buyers stepping in, the additional supply from long-dormant wallets is now hitting a more fragile market structure.
Market observers note that long-term holders tend to sell during periods of high profitability or when macro and liquidity conditions begin to deteriorate.
The current environment, characterized by reduced risk appetite and fading speculative activity, suggests that some early investors may be locking in gains accumulated over multiple market cycles.
The imbalance between rising supply and softening demand has raised concerns about near-term price stability.
Without renewed inflows from institutional or retail investors, analysts warn that Bitcoin could remain under pressure as the market works to absorb the excess supply.
While long-term holders still control a significant share of circulating Bitcoin, continued distribution at current levels could prolong volatility.
For now, traders are closely watching on-chain indicators and fund flow data to assess whether demand can recover quickly enough to sta
bilize prices.
