Long-Term Bitcoin Holders Dump 187k BTC as ETF Inflows Surge—Smart Money or Premature Exit?
Veteran Bitcoin holders just unleashed a massive sell-off—187,000 BTC hitting the markets right as ETF inflows hit record volumes. Are we witnessing a classic 'buy the rumor, sell the news' play, or is something bigger unfolding?
ETF Frenzy Meets Holder Exodus
Institutional money floods in through Bitcoin ETFs—billions pouring into the space—while long-term holders cash out at levels not seen in years. The 187,000 BTC sell-off marks one of the largest divestments by hodlers this cycle.
Timing the Top—Or Missing the Next Leg Up?
Some call it profit-taking; others see it as a loss of conviction. With ETF demand absorbing the sell pressure, Bitcoin’s price holds surprisingly firm. Classic Wall Street meets crypto-native strategy—and for once, traditional finance might actually be providing the exit liquidity. Talk about irony.
Where Does Bitcoin Go From Here?
If ETFs keep buying and holders keep selling, we’re in for a tectonic shift in ownership structure. Retail and institutions accumulate; OGs distribute. The question isn’t whether Bitcoin will survive—it’s who will own it when the dust settles. And if history’s any guide, betting against the hodlers has rarely been a wise move.
Illiquid supply at all-time highs
While older wallets distributed a significant amount of bitcoin, the illiquid supply—coins rarely moved or spent—reached an unprecedented 14.3 million BTC in late August.
This suggests that even as some LTHs exited positions, a substantial amount of bitcoin remains in the hands of holders with little history of selling.
ETF inflows absorb selling pressure
U.S. spot bitcoin ETFs posted robust inflows on September 10, drawing in approximately $757 million, as tracked by ETF flows data.
This upturn in primary-market demand coincided with the wave of LTH distribution, providing a key test of market absorption as new buyers stepped in.
The durability of these inflows, tracked by issuers such as IBIT and FBTC, will be crucial for market stability.
Interpreting the data
LTH Net Position Change, which measures the 30-day change in supply held by long-term holders, registered a negative reading over the past month, signaling net distribution.
CryptoQuant’s daily LTH ‘spent’ metric confirmed the early September spike.
Both datasets define long-term holders as those holding for over 155 days.
Analysts note that in previous bull cycles, LTH distribution often occurred NEAR local price peaks and was typically absorbed by incoming demand. As Glassnode’s research highlights:
“Spikes in LTH spending are often clustered near local highs, then fade as new hands absorb inventory.”
