Galaxy Digital’s Head of Research Alex Thorn shared new on-chain metrics indicating that Bitcoin’s extended period of selling by long-term holders, known as the “Great Distribution,” has concluded in 2026. Data reveals that wallets inactive for years have significantly reduced their activity, while the frequency at which these old wallets “wake up” has dropped by more than half compared to the previous year.
Long-term holders slow down after years of selling
Galaxy Research’s historical data since 2016 identifies a repeating pattern: each time Bitcoin experiences a major bull market, clusters of older coins move again. Such activity was notable during the rallies in 2017, 2021, and the recent surge in 2024–2025.
According to Thorn, investors who had held Bitcoin for between one and ten years typically became more active during these rallies, often moving large quantities to exchanges. The current distribution cycle reached its peak in late 2025, when the cohort holding Bitcoin for one to two years transferred close to 900,000 BTC in a single month.
This robust selling slowed markedly as 2026 began. According to the latest figures, the oldest wallets reverted to inactivity. This pause suggests that those looking to take profits during the two-year rally have already sold, largely removing local selling pressure from long-term holders.
| Period | Key Event | BTC Moved (1-2 year cohort, monthly) |
|---|---|---|
| Late 2025 | Distribution peak | ~900,000 BTC |
| 2026 | Selling slows | Significantly lower |
Quantum computing risk not driving market moves
Thorn also responded to speculation that holders had accelerated selling due to concerns over quantum computing threats. In recent years, some media outlets suggested that large investors might be liquidating positions to avoid potential security risks from advancing quantum technologies.
Galaxy Digital, a blockchain-focused financial services firm offering asset management and institutional investment solutions, reported that none of the selling whales mentioned quantum risk as a reason for their decisions. Instead, Thorn noted that quantum fears primarily deter new entrants from joining the market, rather than prompting established holders to exit.
Mini dictionary: Quantum-resistant network upgrades are technical improvements to blockchain protocols that protect them from potential threats posed by quantum computers, which could, in theory, break current cryptographic security models. Developers are researching and testing algorithms that could safeguard networks like Bitcoin from such risks in the future.
Thorn pointed out that Bitcoin developers are already pursuing upgrades to further strengthen the network’s immunity to quantum attacks. These efforts aim at providing robust protection well before quantum computers become a practical threat.
Thorn highlighted that “not one selling whale mentioned quantum threats as a motivation for closing their positions,” and instead suggested, “audience concerns about quantum risks mostly discourage potential new investors from entering the Bitcoin market, rather than prompting veteran holders to exit.”
Market enters stabilization phase
With the selling activity from long-term holders waning, on-chain data indicates that the market has moved into a new stabilization phase. The surge in movement from older wallets appears to have ended, reducing downward pressure on prices.
Developers remain focused on future-proofing the network by preparing for advances in technology. Meanwhile, institutional participants and veteran holders are no longer driving major sell-offs, allowing the market to consolidate after years of significant distribution.
