Bitcoin’s recent momentum appears to be running into resistance, with new blockchain metrics hinting at cooling demand just as seasoned investors begin locking in profits.
- On-chain data shows long-term holders selling into a weaker demand backdrop.
- Institutional inflows from ETFs and Strategy Inc. have stalled.
- Analysts warn of a fragile balance that could limit short-term upside.
Fresh analysis from CryptoQuant suggests that more coins are being readied for sale while appetite from buyers is thinning — a mix that could unsettle the market’s current balance.
Veteran Holders Start Taking Money Off the Table
Long-term investors, often seen as the market’s steady hands, are beginning to trim their positions after months of holding. CryptoQuant’s data shows that wallets inactive for over five months are now among the biggest sellers. Head of research Julio Moreno described the behavior as typical during late bull phases but noted that this cycle looks different.
“In strong markets, profit-taking is offset by new demand,” Moreno explained in a post on X. “That offset isn’t materializing this time.”
Demand Weakens After Summer Strength
Between July and September, Bitcoin demand indicators rose steadily. But by early October, those same metrics slipped into negative territory, signaling that new buyers had largely retreated. Short-term demand has stayed in the red for roughly a month, while the longer one-year growth trend — still positive for now — is fading fast.
CryptoQuant’s numbers suggest roughly 790,000 BTC have been spent by long-term holders over the past month. Meanwhile, demand from new participants has stalled near zero, leaving the market in what Moreno calls “a delicate stalemate.”
Institutional Flows Lose Steam
Two of the strongest institutional demand engines — spot Bitcoin ETFs and Michael Saylor’s corporate vehicle Strategy Inc. — have both cooled. ETF inflows have turned negative, while Strategy’s net accumulation has flattened, removing a key source of support that previously helped absorb large-scale selling.
A Changing Market Character
The tone of this rally contrasts sharply with earlier phases. At the start of 2025 and late 2024, long-term holder selling was met with a rush of new capital, helping Bitcoin chart fresh record highs. Now, with demand fading and liquidity growth slowing, that feedback loop has broken.
Since the October 10 turbulence that rattled confidence across exchanges, the market has struggled to recover its earlier energy. Unless new inflows appear, analysts warn, Bitcoin could face an extended consolidation period before another sustained advance.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/bitcoin-news-institutional-inflows-slow-as-long-term-holders-sell/
