Veteran Bitcoin Holders Are Using Their BTC Once More: Is It for Profit or Strategic Reallocation?

As Bitcoin settles after its recent surge, the movement of BTC from long-term holders’ wallets has increased. This shift raises questions about whether these transactions are attempts to realize profits or just a tactical move to optimize their assets for potential future gains.

Market analysis from Glassnode indicates that this uptick in activity has caused the overall spending from holders who have kept their coins for one to five years to reach $4.02 billion, marking the highest amount seen since February.

Older Bitcoin investors are once again becoming active. This spending trend is noted by Glassnode as the fifth largest for the one to five year holding period during this bull market. It appears that these seasoned holders are driving the latest uptick in transfers, with a significant volume of activity observed.

Throughout this ongoing bull run, veteran Bitcoin holders have consistently sold off substantial amounts post-rally, with major transactions noted in March, October, November of 2024, and February of 2025.

The peak of spending in this cycle was recorded in October 2024, reaching $9.25 billion, predominantly from the one to two-year holding group. The next significant amounts came from March 2024 and February 2025, at $6.11 billion and $5.42 billion, respectively, sourced from the two to three-year holders. November 2024 also saw a large volume of $4.39 billion from the three to five-year group.

Currently, the three to five-year BTC holders are driving the recent surge in spending, accounting for $2.16 billion. This is noted as their second-highest outflow of the cycle, following a significant outflow of around $6 billion in March 2024. In contrast, those holding for two to three years and one to two years have seen outflows of approximately $1.41 billion and $450 million, respectively.

The intentions behind these transactions remain uncertain—whether long-term holders are cashing in on profits or just shifting their strategies. Over the past six days, Bitcoin has experienced a correction phase, having fallen more than 4% from its all-time high of $111,970.

As of the latest data, Bitcoin is priced at approximately $107,540, reflecting a 3% decrease over the week and a 1.2% decline over the past 24 hours.

Should older holders be reorganizing their investments, Bitcoin could see further consolidation in the near term. Conversely, if they are liquidating some of their assets for profit, it could lead to a steeper correction, potentially dropping below the $106,000 mark.