Approximately $7 billion in Bitcoin has now been transferred out of long-term BTC holder reserve wallets since mid-October of this year. This, according to the latest data and insights shared by Glassnode. Because of this fairly recent development, the leading cryptocurrency’s illiquid supply could make it more challenging for a major price surge to really get going at this point.
Around 62,000 BTC has now been transferred from long-term wallets and/or inactive digital assets wallets since mid-October, Glassnode data revealed. This is actually the first major drop in H2 of this year. BTC price, meanwhile, has fallen sharply in the past few weeks from its ATH of more than $126,000, set on October 6. At present, the flagship crypto has bounced back above $115,000 and briefly surpassing the $116,000 mark.
Glassnode analysts have noted that what is actually interesting is that larger so-called whale crypto wallets have been steadily accumulating during this critical phase. In fact, in the past month, wallets with large holdings have progressively increased their holdings. Interestingly, these prominent wallets have not sold their holdings for the most part since mid-October 2025.
Glassnode further revealed that crypto wallets holding anywhere between $10,000 to $1M of Bitcoin have seen the most significant outflows with steady selling activity since November 2024.
So-called momentum traders have now exited for the most part, meanwhile, dip-purchasers have not really stepped in with as much demand to absorb that circulating supply, Glassnode concluded. They added that with first-time buyers mostly flat now, this imbalance is now putting downward pressure on prices until more robust spot demand emerges.
Indeed, the Bitcoin and crypto markets were jolted earlier this month following US President Trump’s abrupt announcement of massive tariffs planned for China. The single largest liquidation event in crypto took place earlier in October as well. Instead of this being “Uptober”, we have seen a sharply declining market with the Fear and Greed Index reaching “Extreme Fear” and Altcoins showing no signs of life, except for Binance Coin (BNB).
Despite these short-term setbacks, crypto ecosystem fundamentals remain sound and the market could be headed for at least a modest rally before year-end.