Bitcoin Diamond Hand BTC Selling Not ‘Repeat of 2017, 2021,’ Research Warns

Why It Matters

The unprecedented sell‑off by seasoned Bitcoin investors could signal shifting market dynamics and affect price stability, influencing both retail sentiment and institutional strategies.

Key Takeaways

• Long‑term BTC holders sold record amounts in 2024‑25.
• Revived supply outpaces 2017, 2021 cycles.
• Sales occur despite lower market noise.
• Price above $40k triggered holder reassessment.
• Future trend may signal accumulation or exhaustion.

Pulse Analysis

CryptoQuant’s latest on‑chain report shines a light on Bitcoin’s supply dynamics, revealing that unspent transaction outputs (UTXOs) dormant for two years or more have surged to historic levels in 2024 and 2025. This “revived supply” metric, traditionally used to gauge the willingness of long‑term holders to re‑enter the market, now eclipses the peaks observed at the close of the 2017 and 2021 bull runs. Unlike those earlier cycles, the current uptick is unfolding with comparatively muted trading volume and reduced speculative hype, suggesting a distinct market environment.

The influx of older coins onto exchanges has practical consequences for price formation. When seasoned investors liquidate sizable positions, selling pressure can dampen upward momentum, especially as Bitcoin hovers above the $40,000 threshold that appears to have triggered a collective risk reassessment. Market analysts interpret this pattern as a possible “transition” in the ownership base, where the balance shifts from hold‑till‑forever custodians to more active traders. Whether the observed moderation in 2026 marks the start of a new accumulation phase or merely a temporary pause remains a focal point for traders.

Looking ahead, the broader crypto ecosystem is bracing for a projected bear market in 2026, with price targets many analysts placing well below the current $90,000 level. Investors and fund managers will likely monitor revived supply alongside other on‑chain indicators such as hash‑rate trends and exchange inflows to gauge market health. Understanding the behavior of long‑term holders provides a strategic edge, as shifts in their activity often precede larger macro‑economic moves. Consequently, CryptoQuant’s data underscores the importance of granular blockchain analytics in shaping investment decisions.