Bitcoin’s oldest holders have suddenly stopped moving their coins. For two years, early adopters regularly sold parts of their stash, influencing market supply. But in the second quarter of 2024, wallets untouched for years barely transferred BTC, marking a dramatic shift. Galaxy’s on-chain research reveals this pause, indicating a potential new phase in Bitcoin’s cycle where long-term selling pressure fades.
According to Alex Thorn, Galaxy’s head of research, the volume of dormant Bitcoin transactions hit the lowest point since late 2022 during Q2. The Coin Days Destroyed metric, which weighs coins held for extended periods, also showed a steep drop. These indicators track how often long-held coins are reactivated and sold. When activity spikes, it signals profit-taking by early investors, often called “OGs.” Now, those waves of sales have quieted down.
This slowdown means fewer coins are flowing onto exchanges from these longstanding holders, tightening available supply. Combined with ongoing demand, this could strengthen Bitcoin’s price support. The pattern resembles the end of a distribution cycle seen during the 2017 bull run, when early holders cashed out in waves. Thorn suggests we might be witnessing the close of a similar chapter.
As Bitcoin hovers near key price levels around $68,000, this data challenges some technical assumptions. The drying up of historical token movement signals that early investors are holding tight, rather than selling off. This contrasts with recent market behavior where active long-term selling pushed prices down.
Such a shift could impact how Bitcoin’s supply-demand dynamics play out in coming months. With a smaller supply readily available from early holders, fresh demand might face less resistance. This environment can fuel stability or even new price growth, depending on broader market factors.
