Long-term Bitcoin investors have returned to active selling, with distribution accelerating to its fastest pace since late summer. The renewed sell-off comes as Bitcoin continues to underperform broader financial markets.

Over the past 30 days, investors who have held Bitcoin for at least 155 days — a cohort typically viewed as the market’s most conviction-driven participants — have sold an estimated 143,000 BTC, according to data from Glassnode. This marks the most aggressive reduction in long-term holdings in roughly five months.

Bitcoin’s price performance has increasingly diverged from traditional assets. While commodities such as gold and silver are trading at or near record highs, BTC has struggled to regain upward momentum. This widening gap suggests mounting stress within the crypto market and raises the risk of further downside or an extended period of consolidation.

The current wave of selling closely mirrors activity observed in August, when long-term holders offloaded approximately 170,000 BTC over a similar timeframe. That period of distribution occurred at elevated price levels and was later followed by the market peak in October, reinforcing the view that seasoned investors tend to reduce exposure near cycle highs.

The October top aligned with the widely followed four-year Bitcoin cycle tied to halving events, which reduce miner rewards roughly every four years. The most recent halving took place in April 2024. Historically, cycle peaks often emerge in the fourth quarter before giving way to prolonged corrections and sideways price action.

At the cycle high, nearly all coins held by long-term investors — around 15 million BTC — were in profit. After a sharp 36% decline from the October peak into late November, sentiment briefly shifted. In late December and early January, long-term holders temporarily returned to net accumulation, easing selling pressure and helping Bitcoin rebound toward $97,000.

That phase, however, proved short-lived. Roughly 2 million BTC are now back in unrealized loss, and long-term holders currently control about 14.5 million coins. This underscores that continued distribution from this group remains one of the primary obstacles preventing a sustained recovery in Bitcoin’s price.