The Bitcoin market is currently facing strong selling pressure, with much of it traced back to long-dormant whale wallets. On-chain data reveals that wallets holding BTC for three to five years have offloaded a significant portion of their holdings, affecting the overall supply available in the market.
Whales cash out, institutions buy in
While large and old wallets are providing steady sell flows, institutional investors are showing renewed appetite for Bitcoin. Over the past week, institutions added 24,869 BTC to their portfolios, a move that analysts say could continue with another 15,000 BTC if current accumulation trends persist, according to analyst Alphractal.
Latest data from CryptoAppsy places the BTC price in a narrow band around $77,113.91, with a sense of caution prevailing among market participants.
Even so, weekly institutional purchases remain high compared to new coin issuance. However, the ongoing whale sales and shifting of coins from long-term holders have kept upward momentum at bay. Much of this selling is happening outside of exchanges, via over-the-counter (OTC) transactions, which helps avoid sudden price swings on the spot market.
ETFs draw demand as whales find exit opportunities
Demand for Bitcoin-based ETFs remains robust, but analysts highlight that this has presented a chance for old whales to cash out. Especially among wallets dormant for more than seven years, OTC deals are the preferred method for offloading coins. On-chain analysis indicates that by the end of February, wallets holding BTC for three to five years made up less than 10% of the circulating supply, down from 13% at the end of 2025.
Institutional investors are buying nearly 50,000 BTC per month, yet the recent surge in whale activity has largely balanced this demand and helped stabilize prices.
Alphractal observes that BTC exiting long-held wallets has tempered the positive price impact of ETF inflows, noting, “Most of the selling is not rushed or panic-driven, but rather strategic and within a narrow price band.”
Since the start of the year, wallets dormant for over five years have sold a total of 38,400 BTC, which matches the demand seen from ETFs over approximately three months.
Will whale selling finally end?
Analysts point out that the wave of ETF demand and whale sales is triggering a redistribution of BTC ownership. Whether the market transitions into a new phase now depends largely on when these whales complete their selling.
By May 2026, the Coin Days Destroyed (CDD) metric suggests that the bulk of large transfers from old wallets has wound down, with movement shifting to a slower pace.
Looking ahead, further selling could keep BTC caught between $78,000 and $82,000, according to analysts. Long-standing holders often take the opportunity to sell during price surges, locking in profit due to their low entry costs.
The most notable trend has been large investors accumulating during market sideways movement and then selling in waves with each new price rally. In recent days alone, 8,063 BTC have been moved to centralized exchanges, signaling that another round of selling may be on the horizon.
Glossary: Coin Days Destroyed (CDD) is an on-chain indicator calculated by multiplying the number of coins moved by how long they were dormant before transfer. High CDD means coins held for a long time are being moved; low CDD signals activity from short-term holders.
BTC supply and demand: key numbers
| Group / Metric | Sell (BTC) | Buy (BTC) | Period |
|---|---|---|---|
| Wallets dormant 3-5 years | 38,400 | – | First 5 months of 2026 |
| Institutional ETF demand | – | 50,000 | Last 3 months |
