Bitcoin Long-Term Holders Enter Distribution Phase, Signaling Supply Structure Shift
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 10 2026- Supply Dynamics Shift: Recent data from CryptoQuant indicates that the 30-day net position change for Bitcoin long-term holders has flipped deeply negative, suggesting older coins are re-entering circulation, a pattern typically observed during mature trend phases where holders lock in profits at elevated price levels, impacting market supply-demand balance.
- Distribution Mode Transition: The gradual distribution behavior of long-term holders indicates an orderly supply release rather than panic liquidation, marking a structural shift where selling pressure is increasingly driven by long-term participants rather than short-term traders, thus altering market dynamics.
- Increased Market Sensitivity: As long-term holders distribute, market sensitivity to liquidity and macro events rises, with price stability now relying more heavily on sustained demand inflows rather than mere supply constraints, which may lead to wider trading ranges and increased volatility.
- Maturing Market Cycle: The combination of long-term holder distribution and slowing realized cap growth points to a maturing Bitcoin market cycle, suggesting that the next phase will be characterized by a more complex market environment where price stability is contingent on demand strength rather than scarcity alone.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
