Long-term Bitcoin holders have dramatically reduced their selling activity as profitability metrics approach two-year lows, according to fresh on-chain data. The sharp decline in realized profits suggests a "complete reset" of market sentiment, with veteran investors showing renewed conviction to hold despite BTC's recent price volatility around the $90,000 level.
Bitcoin's long-term holder cohort is experiencing a dramatic shift in market behavior, with profitability metrics now approaching levels not seen in two years, signaling what analysts are calling a "complete reset" of investor sentiment.
Recent blockchain data reveals that long-term holders—typically defined as entities holding Bitcoin for more than 155 days—have significantly curtailed their selling activity as BTC hovered around the $90,000 mark. This behavioral change coincides with a notable compression in the profitability of their holdings, suggesting that the easy gains from earlier accumulation periods have largely been exhausted.
The decline in realized profits among these veteran holders represents a pivotal shift in market dynamics. When profitability is high, long-term holders historically tend to distribute coins to newer market participants, creating selling pressure. However, the current environment shows these seasoned investors are choosing to maintain their positions despite reduced paper gains, indicating strong conviction in Bitcoin's longer-term trajectory.
This "complete reset" phenomenon is particularly significant for market structure. When long-term holder profitability contracts to multi-year lows, it often signals that much of the speculative froth has been removed from the market. These holders, having weathered previous cycles, are less likely to panic sell during volatility and more likely to view current prices as accumulation opportunities rather than exit points.
The reduced selling pressure from this cohort could have important implications for Bitcoin's price action going forward. With less supply hitting the market from experienced holders who typically distribute during euphoric phases, the supply-demand dynamics may shift favorably for price appreciation once broader market conditions improve.
Historically, periods when long-term holder profitability reaches extreme lows have often preceded significant market recoveries, as these metrics suggest that weak hands have been shaken out and conviction buyers dominate the holder base. While past performance doesn't guarantee future results, the current reset in holder profitability provides important context for understanding Bitcoin's evolving market structure.
As Bitcoin continues to mature as an asset class, the behavior of long-term holders remains a critical metric for assessing market health and potential directional shifts in the months ahead.