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On-chain analytics platform Glassnode reported that increased selling from long-dormant Bitcoin wallets in recent weeks has created a significant resistance limiting price gains.
According to the company’s social media post, approximately 62,000 BTC have been moved from long-dormant wallets since mid-October. Glassnode noted that this has increased the supply in the market, making it harder for prices to rise:
The dormant supply of Bitcoin has begun to dwindle. Without strong new demand, any upward movement in prices will encounter further resistance.
Stagnant supply was seen as the primary driver of price increases in the current cycle. However, a reversal in this trend risks weakening market momentum. According to Glassnode, a similar supply reversal occurred in January 2024, resulting in a massive outflow of 400,000 BTC, causing a loss of momentum. While the current shift is more subtle, the trend is striking.
Meanwhile, whale wallets continue to increase their Bitcoin holdings during this period. While whale wallets have seen a steady increase over the past 30 days, no major sell-off has been seen since October 15th.
In contrast, wallets holding between 0.1 and 10 BTC (approximately $10,000-$1 million) have been net sellers for the past year. Momentum investors have withdrawn from the market, and buyback funds haven’t generated enough demand to counter the selling pressure.
Glassnode argued that this supply-demand imbalance will continue to suppress prices if new buyers do not enter the market.
*This is not investment advice.
