Bitcoin’s on-chain data is revealing one of the most significant structural shifts in its history.
- Dormant Bitcoin wallets are moving coins after years of inactivity.
- Long-term holders are selling to institutions and retail buyers.
- This marks the biggest transfer of old BTC in history.
- New holders may struggle during the next major downturn.
According to crypto analyst CrediBULL Crypto, a massive amount of dormant Bitcoin held by early adopters – often referred to as “OGs” – is being transferred to institutional investors and retail buyers through traditional finance channels. The analysis, backed by data from Bitcoin Magazine Pro, shows a wave of revived supply known as “Whale Shadows,” representing coins that have remained untouched for years but are now on the move.
Massive Distribution from Long-Term Holders
The chart data indicates a growing pattern of activity from wallets holding Bitcoin for over a decade. Since the start of 2024, when Bitcoin consistently traded above $50,000, there has been a sharp uptick in 10-year-plus coins being moved on-chain – a sign that some of the oldest holders are taking profits or liquidating portions of their holdings.
What we’re seeing is a very clear distribution by “OG”‘s also known as “long term holders” into the hands of trad-fi and instos (buying on behalf of retail in many cases).
The thing is- this doesn’t mean the “top is in” as we see this sort of selling from long term holders… https://t.co/zhFBYdH9CP pic.twitter.com/EkAVRJM7Iw
— CrediBULL Crypto (@CredibleCrypto) November 4, 2025
CrediBULL Crypto explained that such long-term holder distribution happens in every bull cycle, but what makes this one stand out is its magnitude and the market’s resilience. Despite the sell pressure, Bitcoin’s price has remained remarkably stable, buoyed by inflows from institutional entities, ETFs, and retail investors seeking exposure through regulated products.
“The inflows from TradFi and institutional buyers are absorbing this selling very well,” the analyst noted, emphasizing that Bitcoin’s ability to hold above key price levels reflects strong underlying demand.
The Rise of a New Type of Holder
However, CrediBULL warns that the composition of Bitcoin’s holder base is changing in ways that could have far-reaching consequences. For the first time in Bitcoin’s history, a large portion of its supply is transitioning from “diamond hands” – investors accustomed to extreme volatility – to a new group that has never experienced an 80% market correction.
These new holders, often exposed through institutional products or short-term trading instruments, may not have the same conviction to weather deep drawdowns. “This is arguably the biggest exchange of Bitcoin we’ve ever seen from long-term holders into the hands of people who have never faced a major bear market,” the analyst said.
He cautioned that these “weak hands” could amplify future sell-offs once the current bullish momentum fades. “When the next secular bear market comes, this lack of psychological resilience could make it the most devastating in Bitcoin’s history,” he added.
Bullish Before the Breakdown
Despite his long-term warning, CrediBULL remains optimistic in the near term. He believes that Bitcoin’s current strength is supported by continuous institutional accumulation and growing global acceptance of the asset as a strategic reserve. “For now, the number still goes up,” he said, implying that the market remains in a phase of distribution before an eventual top forms.
If the current trend continues, Bitcoin could see further appreciation before a structural correction takes hold. The transition of coins from early adopters to newer entrants marks a new phase in Bitcoin’s maturity – one that blends traditional finance participation with on-chain historical wealth, but also introduces new risks of market instability once sentiment turns.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/bitcoin-news-analyst-warns-of-most-devastating-future-bear-market/