On-chain data analysts confirmed today a relevant change in the Bitcoin price trend during this month. Long-term holders stopped their distribution phase after massively liquidating assets throughout the entire past year. In this way, the digital financial market prepares for a potential stage of very significant institutional accumulation soon. This news follows the observation of the exhaustion of selling pressure across major exchange platforms.
During 2025, the oldest holders sold nearly 300 billion dollars in various digital assets. On the other hand, this figure represents one of the largest supply resets in financial history today. Statistics show that most of these sales occurred between last November and December. Likewise, the volume of inactive coins returning to circulation reached historical levels never seen before. Therefore, the ownership structure of the asset has changed in a radical way.
This capitulation phenomenon usually precedes periods of economic recovery within the cryptocurrencies sector. Therefore, experts consider that the purge of weak hands has successfully ended during this week. Additionally, the price has managed to remain firm despite the massive liquidity poured into the market. Thus, the current technical support demonstrates institutional resilience far superior to previous cycles. However, investors must closely monitor the behavior of whales in the market.
Supply consolidation after the largest distribution process ever recorded
Since late December, the supply held by large investors stopped falling in an abrupt manner. Likewise, this metric has stabilized at around 13.6 million units of account. On the other hand, the pause in massive digital asset distribution suggests a shift in sentiment. It is also important to note that the price has entered a defined sideways range. In this way, the market is building a solid base of support for the future.
The ratio between short and long term holders reached critical levels quite recently. Therefore, this technical indicator suggests that Bitcoin could start a rally toward new highs very soon. Likewise, every time this ratio drops, an explosive recovery of market value usually occurs. Furthermore, the current stability of supply is the main catalyst for sustainable growth in the medium term. Consequently, market participants’ confidence is gradually returning to the ecosystem.
Can the scarcity of available assets drive a recovery toward new highs?
The implications of this supply exhaustion are fundamental for both retail and institutional investors. On the other hand, if demand remains constant, the lower availability of assets will push value higher. Likewise, the reduction of selling pressure from miners also contributes to this specific scenario. Thus, the financial ecosystem expects that volatility will be significantly reduced in the coming days. However, external macroeconomic factors could influence the speed of this entire process.
Analysts’ eyes are now on the third quarter of the current year. Therefore, it is expected that the bullish trend will consolidate definitively toward mid-2026. Additionally, the analysis of relative strength indicators shows clear signs of an imminent recovery. Likewise, the current consolidation is necessary to guarantee an organic movement toward one hundred thousand dollars. Consequently, the market is in a vital transition phase for its global evolution.
