Data from CryptoQuant shows that wallets holding Bitcoin for over five months reduced their balances by about 183,000 BTC in the last 30 days.

The heaviest burst came in early September, when around 8,000 BTC were spent in a single day — the largest single-session move by long-term holders this year.

Hoarding at the Same Time

Yet while old coins reentered circulation, another cohort doubled down. Glassnode reports that nearly 14.3 million BTC are now locked in “illiquid supply” – coins held by entities that rarely transact. This record high suggests a growing pool of Bitcoin is effectively off the market, even as prices cooled in late August.

ETFs Absorb the Flow

Adding to the picture, U.S. spot Bitcoin ETFs posted $757 million in net inflows on September 10, according to SoSoValue. Aggregated data from Farside Investors shows that demand from institutional products has been climbing in tandem with the distribution from long-term holders, effectively absorbing much of the supply.

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What It Means for the Cycle

Historically, these transitions — where veteran wallets take profit while new buyers step in — have coincided with local tops but not necessarily cycle endings. Once supply from older holders is absorbed, markets often reset and continue higher.

For now, the market is balancing three forces: profit-taking from long-tenured wallets, deep hoarding by illiquid entities, and steady ETF demand. How that balance plays out could determine Bitcoin’s next leg.

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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