Why Is Bitcoin Still Rising Despite Long-Term Holder Sales?
Bharatmorning.com – Why is Bitcoin still rising even as long-term holders sell? Bitcoin remained near $84,100 on September 26, up 4.6% from a month earlier, as market demand appeared to absorb available supply more effectively than during earlier peak periods.
Some established investors are continuing to realise profits, but their incentives to sell may be less intense than they were at previous highs. On-chain data suggests that the amount of profit being taken across the market has eased, reducing a potential source of pressure on Bitcoin’s price.
Long-Term Holders Have Smaller Gains to Protect
CryptoQuant data showed that the average gain for long-term Bitcoin holders was about 72% in September 2026. That was well below the roughly 350% average gain reported in December 2024. Investors with smaller unrealised gains may be less likely to sell aggressively during a rally.
In this analysis, long-term holders are investors who have owned Bitcoin for at least five months. Because many bought before more recent market participants, they often have some of the largest embedded gains and can have an outsized influence when they begin selling.
Heavy selling by these holders can make a rally more vulnerable if new demand weakens. However, current indicators point to a more restrained distribution pattern than at Bitcoin’s major highs in 2025.
Lower Sell-Side Risk Supports Bitcoin’s Price
Glassnode’s sell-side risk ratio measures realised profit and loss relative to the value of Bitcoin’s supply. The ratio was much higher during the largest rallies of 2025, indicating stronger profit-taking activity at those points.
At the July 2025 high, the ratio reached 35 basis points per day. It later climbed to 23 basis points per day at the October 2025 peak. By early September 2026, it had fallen to 7 basis points per day.
Long-term holders also accounted for a smaller share of realised gains. They represented about 47% of realised profits in early September, compared with 88% at the August peak. Selling has not stopped, but the figures suggest that fewer deeply profitable investors are distributing coins into the market.
Mid-Sized Wallets Added 113,950 BTC
Another answer to why is Bitcoin still rising may be accumulation by wallets holding between 100 and 1,000 BTC. These addresses added a combined 113,950 BTC from July 15 through late September, bringing their holdings to about 5.24 million BTC.
Their total balance rose approximately 2.2% over that period. Wallets in this range can belong to wealthy individuals, hedge funds, trading firms, exchanges or other large participants, making the increase a notable sign of accumulation within this part of the network.
Wallet data should still be interpreted carefully. An increase in this address category does not prove that every coin was bought on the open market. Exchanges may consolidate balances, while funds may move assets between addresses. On-chain data also cannot show every trade completed inside an exchange order book.
ETF Inflows May Be Offsetting Supply
Spot Bitcoin exchange-traded funds provided another potential source of demand. On September 21, spot Bitcoin ETFs recorded about $999 million in inflows. Continued fund demand can help absorb Bitcoin being sold by long-term holders.
ETF flows are closely watched because they allow investors to gain exposure through traditional investment vehicles. When inflows remain strong, they may provide support even while some holders reduce their positions.
FAQ: What Bitcoin Investors Should Watch
Why is Bitcoin still rising if investors are taking profits?
Bitcoin can rise when buying demand exceeds the coins being sold. Lower sell-side risk, accumulation in mid-sized wallets and spot Bitcoin ETF inflows may all help absorb supply from profit-taking holders.
Does the rise in large wallet balances guarantee new buying?
No. Higher balances can reflect buying, but they can also result from transfers, address consolidation or changes in how exchanges and funds store Bitcoin. Wallet data is most useful when considered alongside price action and other market indicators.
What should US investors consider before buying Bitcoin?
Bitcoin remains volatile, and on-chain indicators cannot predict short-term price movements with certainty. Investors should consider their risk tolerance, investment time horizon and the possibility of rapid price declines before making a decision.