Long-Term Bitcoin Owners Resume BTC Spending: Is It for Financial Gains or Tactical Reinvestment?
Long-term Bitcoin holders, particularly those who have held their coins for three to five years, are demonstrating increased spending activity, according to market research firm Glassnode. This trend, which has driven the aggregate volume from the one-year to five-year cohorts to $4.02 billion, marks the highest level since February.
Glassnode reports that this is the fifth-largest one-year to five-year spending spike of this bull cycle, signifying increased activity from older Bitcoin holders. Since the beginning of the bull run, these investors have recorded significant spending after each Bitcoin rally, with the largest outflows occurring in specific months such as October 2024, March 2024, and February 2025.
The recent surge is primarily being driven by the three-year to five-year Bitcoin holder cohort, which has spent approximately $2.16 billion. This outflow is the second-largest recorded for this cohort in the cycle, following an approximately $6 billion outflow in March 2024. The two-year to three-year and one-year to two-year cohorts have also seen some spending activity, with amounts of $1.41 billion and $450 million, respectively.
The reason for this increased spending remains unclear, with questions arising as to whether these long-term holders are taking profits or strategically reallocating their assets. Bitcoin has been in a correctional phase over the past six days, slipping more than 4% from its recent all-time high of $111,970. As of now, Bitcoin is trading around $107,540, having experienced a 3% weekly decline and a 1.2% 24-hour drop.
If strategic reallocation is the goal, Bitcoin may consolidate further in the coming days. However, if profit-taking is the primary driver, the asset could potentially experience a deeper correction, dropping below $106,000. The exact implications of this spending trend on the Bitcoin price are yet to be fully understood, but the sustained growth in long-term supply and the overall market strength suggest a positive outlook for Bitcoin's future price trajectory.
- Long-term Bitcoin holders, with the three-year to five-year cohort being particularly active, are demonstrating increased spending activity, as reported by Glassnode, which has led to a surge in the aggregate volume and marks the highest level since February.
- These older Bitcoin holders have historically shown significant spending after each Bitcoin rally, with the largest outflows occurring in specific months such as October 2024, March 2024, and February 2025, indicating investing activity linked to technology.
- Glassnode's findings also suggest that the recent surge in spending could be linked to either strategic reallocation of assets or profit-taking, as Bitcoin has been experiencing a correctional phase over the past six days, with the asset potentially dropping below $106,000 if profit-taking is the primary driver.
