Bitcoin Long-Term Holders Cash In Big – Is This the Peak Before the Plunge?
Bitcoin's ride-or-die crew just triggered profit-taking alarms. After years of diamond hands, veteran BTC holders are finally unloading at juicy margins—but their sell-off could spell trouble for latecomers.
Hodlers become sellers at critical threshold
When the OGs start cashing out, markets listen. These aren't weak-handed traders papering over losses—they're battle-tested investors locking in generational gains. Their exits don't just move markets; they rewrite playbooks.
The institutionalization paradox
Wall Street's newfound crypto obsession created the perfect exit liquidity. While suits brag about 'digital gold' in boardrooms, early adopters are quietly transferring risk to the very institutions that mocked them pre-2021. Poetic justice tastes better than Lamborghinis.
History rhymes (until it doesn't)
Every cycle claims 'this time is different' before gravity kicks in. Whether this is a healthy correction or the start of another crypto winter depends on one question: are we watching smart money rotate—or the smartest money escape?
Bonus jab: Nothing brings out 'long-term vision' like 300% gains and a chance to dump bags on Goldman Sachs clients.
LTHs Take Profits
According to Gaah, the LTH Spent Output Profit Ratio (SOPR) has climbed to its highest level in 2025. The indicator has passed the mid-range, but remains below the red zone, which has marked cycle tops in past bull markets.
The SOPR’s current level indicates that LTHs have increased their selling activities, taking more profit, but not at excessive levels. Gaah said the market usually sees such high levels during periods of euphoria and mass distribution. This further suggests that the market has not yet reached its peak, despite bitcoin’s rally past $123,000.
Analyzing past data, market experts see macro top signals when the LTH SOPR rises to a level above 4.0. The metric is currently slightly above 2.5, supporting the belief that there is room for further price appreciation before the market reaches overheated levels.
“This behavior indicates a heated market, but still far from a final top. Investors should monitor the continuation of this trend as a sign of the cycle’s maturation, without ignoring the risks of significant corrections along the way,” Gaah added.
Whale Inflows to Exchanges Rise
Meanwhile, the surge in LTH profit-taking is evident in flows from Bitcoin whales to crypto exchanges. A previous report revealed that the monthly average of whale inflows has increased by approximately $17 billion, from $28 billion to $ 45 billion. The market witnessed this growth between July 14 and 18, around the time BTC touched $123,000 for the first time.
The increase in flows to exchanges reflects the transfer of at least 80,000 BTC, as whales scramble to lock in profits.
Analysts say Bitcoin’s outlook remains bullish, but with a slight fragility in the NEAR term. This could be further exacerbated by continued profit-taking by whales, LTHs, and even retail investors. Fortunately, CryptoQuant also found a decline in daily whale inflows to exchanges, suggesting that selling pressure is easing. Regardless, BTC could either consolidate or face a deeper correction before its next leg up.
