Why Is Bitcoin Still Rising Despite Long-Term Holder Selling?
Indiadailyupdate.com – Why is Bitcoin still rising even as long-term holders sell? Bitcoin remained near $84,100 on September 26, up 4.6% over the previous month, as demand from larger wallets and spot Bitcoin exchange-traded funds appeared to absorb part of the available supply.
Long-term holders, defined here as investors who have held Bitcoin for at least five months, can become a significant source of selling during strong market rallies. Yet their average unrealized gain was about 72%, well below the roughly 350% average gain recorded in December 2024. With profits less extreme, there may be less incentive for widespread selling.
Large Wallet Balances Have Increased
Addresses holding between 100 and 1,000 BTC added a combined 113,950 BTC between July 15 and late September. Their total holdings rose to around 5.24 million BTC, an increase of approximately 2.2%.
This wallet range can include wealthy investors, funds, trading firms, exchanges, and other large market participants. However, higher balances do not necessarily prove that every additional coin was bought on the open market. Organizations can move Bitcoin between addresses, while exchanges may consolidate customer assets.
Why is Bitcoin still rising if wallet data cannot confirm new purchases? The figures are best viewed alongside other indicators, including lighter profit-taking by older holders and demand through regulated investment products.
Profit-Taking Has Eased From Earlier Peaks
Glassnode’s sell-side risk ratio, which compares realized gains and losses with Bitcoin’s total supply value, indicates that profit-taking was much lower than at major 2025 highs. The ratio reached 35 basis points per day at the July 2025 high and 23 basis points daily at the October 2025 peak, before falling to 7 basis points per day in early September 2026.
Long-term holders also represented about 47% of realized profits in early September, compared with 88% at the August peak. Lower realized profit-taking does not remove the possibility of volatility, but it suggests that fewer early investors are exiting aggressively.
ETF Inflows Add Another Source of Demand
Spot Bitcoin ETFs recorded about $999 million in net inflows on September 21. These funds give investors in the United States and other markets a way to gain Bitcoin exposure through brokerage accounts without managing private keys or cryptocurrency wallets directly.
Bitcoin’s resilience has also stood out against a challenging interest-rate environment. The U.S. 10-year Treasury yield reached 5% on September 15, its highest level since 2007. Higher yields can make interest-bearing government debt more attractive relative to assets such as Bitcoin, which does not generate income.
Despite that backdrop, Bitcoin gained 3.3% in the week before September 26. Why is Bitcoin still rising? The available data suggests that demand from larger wallets, ETF investors, traders, and other buyers has so far outweighed the selling pressure from long-term holders.
FAQ: Bitcoin’s Recent Price Strength
Does long-term-holder selling mean Bitcoin will fall?
Not necessarily. Selling can pressure prices, but the effect depends on whether buyers are willing to absorb the supply. Recent market data suggests demand has remained strong enough to limit that pressure.
What do Bitcoin ETF inflows mean for investors?
Net ETF inflows indicate that more money entered these funds than left them during the period measured. They can signal demand, but daily flows can change quickly and should not be treated as a guarantee of future price gains.
Should U.S. investors use Bitcoin’s price rise as a buying signal?
A price increase alone is not a complete investment case. Investors should consider volatility, their financial goals, risk tolerance, and the possibility that market conditions can reverse rapidly.
