Dormant Bitcoin movement reached its lowest point since 2022 in Q2, suggesting long-term holders are pausing major sales after significant profit-taking earlier in 2024 and 2025, according to Galaxy data
Bitcoin's long-term holders are showing signs of restraint, with the movement of dormant coins dropping to its lowest level since the third quarter of 2022. According to a report from Galaxy, this trend emerged in the second quarter of 2026, following a period of heavy profit-taking by older holders during the 2024 and 2025 bull market. The data suggests that many investors who had previously held their Bitcoin for extended periods are now choosing to keep their assets off the market, reducing selling pressure after a wave of realized gains.
Galaxy's analysis highlights two key metrics: the movement of dormant Bitcoin and Coin Days Destroyed, a measure that gives greater weight to older coins when they are spent. Both indicators showed a marked decline in Q2, reinforcing the view that long-term holders are stepping back from active trading. Historically, spikes in dormant coin movement have coincided with major profit-taking events and increased market volatility, while quieter periods often signal a more stable holder base.
This shift comes after Bitcoin's price experienced a sharp correction. After reaching an all-time high above $126,000 in October 2025, Bitcoin fell nearly 48% to trade around $65,265 by mid-July 2026. The reduction in whale selling-large holders moving significant amounts of Bitcoin-has contributed to a more stable market environment, with fewer large-scale liquidations and less downward price pressure in recent months.
Some market participants have speculated that concerns over quantum computing risks might be driving long-term holders to sell. However, Galaxy's research head, Alex Thorn, pushed back on this theory, stating that institutional investors and large holders have not cited quantum threats as a reason for liquidating positions. Instead, the data points to profit realization as the primary driver behind earlier selling, with current behavior reflecting a pause as holders reassess market conditions.
On-chain data from multiple analytics providers supports Galaxy's findings. Coin Days Destroyed, which tracks the cumulative age of coins moved, fell to its lowest quarterly level since late 2022. This metric is often used by analysts to gauge the conviction of long-term holders and to identify periods when older coins are re-entering circulation. The current lull suggests that the majority of long-held Bitcoin remains in cold storage or inactive wallets, reducing the immediate risk of large-scale sell-offs.
For U.S. investors and market observers, the slowdown in dormant coin movement may indicate a maturing market dynamic. With fewer long-term holders selling into price weakness, Bitcoin's supply on exchanges remains relatively constrained, potentially supporting price stability. However, the market remains sensitive to macroeconomic factors, regulatory developments, and shifts in investor sentiment, all of which could influence future selling behavior.
According to Coin Metrics, Bitcoin's circulating supply stood at approximately 19.7 million BTC as of July 15, 2026. Exchange balances have remained steady, with less than 12% of total supply held on major trading platforms, reflecting ongoing trends in self-custody and long-term storage. Daily trading volumes averaged $18 billion across major spot exchanges in June 2026, down from peaks seen during the 2025 bull run.
Bitcoin's dormant coin movement is a key indicator for analysts tracking market cycles and investor behavior. When long-held coins begin to move, it often signals a shift in sentiment or a response to major price changes. Conversely, periods of low movement suggest that holders are content to wait out volatility, potentially reducing the risk of sudden price swings. As the market continues to evolve, monitoring these on-chain signals can provide valuable context for understanding supply dynamics and the motivations of large holders.
