Glassnode has reported that 62,000 BTC recently moved out of long-term holder wallets, indicating increased liquidity amid market volatility noted in late October 2025. The shift suggests possible increased trading activity and potential market shifts, though the immediate impact on BTC's price and related regulatory outcomes remain to be observed.
Significant BTC Movement from Long-Term Holders
Glassnode recently reported that approximately 62,000 BTC shifted from long-term holder wallets to liquid ones. This marks a decrease in illiquid Bitcoin supply since mid-October, coinciding with recent market volatility, according to Glassnode's analysis.
The movement of 62,000 BTC indicates a net outflow, affecting Bitcoin's illiquidity and potentially increasing its tradability. This indicates a shift in holder strategy, influenced by recent market trends. As noted by Rafael Schultze-Kraft, CTO of Glassnode, "Illiquid Bitcoin supply has started to decrease, with about 62,000 BTC moving out of long-term holders since mid-October 2025."
Decline in Bitcoin's Illiquid Supply
The shift contributed to a 2% decline in Bitcoin's illiquid supply in Q3. Retail investors continued reducing exposure while large holders, known as whales, increased accumulation, following market volatility since mid-October.
History shows that similar BTC balance reductions at cycle peaks lead to temporary price drops. This trend aligns with increased sale pressure as dormant coins become tradeable, reflecting past market behaviors observed in 2017 and 2021.
Historical Reductions Correlate with Market Volatility
Past long-term holder reductions, such as during 2017 and 2021’s bull markets, showed short-term sell pressures. These events corresponded with increased volatility and price pullbacks, offering a prognosis for recent activity's potential outcome.
Experts suggest that most long-term holders remain consistent despite market changes. However, a 2% dip in illiquid supply, paired with current changes, may lead to volatility, aligning with other historical Bitcoin market corrections.