Bitcoin supply dynamics are changing as long-term holders sell while dolphins buy

On-chain data shows growing selling activity among long-term Bitcoin holders, whose collective holdings have reached their lowest point this year.

Noted crypto analyst James Check, also known as Checkmate, highlighted the magnitude of this trend, noting that the selling pressure from these holders far exceeds demand from ETFs and institutional players like MicroStrategy.

Data from CryptoQuant shows that long-term holders (LTHs) – investors who hold onto Bitcoin for more than 155 days – dumped around 800,000 BTC last month.

Meanwhile, institutional entities like MicroStrategy added 149,880 BTC and Bitcoin ETFs acquired 84,193 BTC. That still left 487,000 BTC to be absorbed by short-term holders, primarily retail investors.

Interestingly, Dolphins – wallets valued between 100 and 500 BTC – have become significant buyers during this period, accumulating over 350,000 BTC. This shift highlights a notable shift in supply trends and market sentiment.

While institutional and ETF-driven demand has not immediately translated into strong price movements, it does indicate evolving participant profiles and their growing influence on Bitcoin market trends.