Bitcoin’s prolonged distribution phase may be losing momentum, as long-term holders slow their selling for the first time in months. At the same time, large Ethereum holders are quietly increasing their exposure, suggesting a shift in positioning among some of the market’s biggest players even as broader sentiment remains cautious.

Onchain data shows wallets holding Bitcoin for more than 155 days reduced their balances steadily from mid-year through December. However, recent figures indicate that the pace of selling has finally stalled, marking the first meaningful pause since July. While this does not signal an outright trend reversal, it suggests that some long-term investors are choosing to sit tight rather than continue trimming positions at current levels.

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Market observers often view long-term holders as a stabilizing force. Their behavior tends to reflect conviction rather than short-term speculation. When these wallets reduce selling pressure, it can help ease downward momentum, even if prices remain range-bound.

Ethereum’s largest holders quietly accumulate

Alongside the shift in Bitcoin behavior, Ethereum whales have been steadily adding to their holdings. Data cited by analysts shows that addresses holding more than 1,000 ETH have collectively accumulated roughly 120,000 Ether since late December.

These large wallets now control close to 70% of Ethereum’s circulating supply, a share that has been gradually increasing since late 2024. Analysts note that this pattern often reflects long-term positioning rather than short-term trading, especially when accumulation occurs during periods of muted price action.

Some market participants interpret the trend as a signal that large investors see value at current levels, particularly as Ethereum’s ecosystem continues to mature through upgrades, staking adoption and broader institutional interest. However, accumulation alone does not guarantee near-term price strength, especially in a market still grappling with macro uncertainty.

Risk appetite remains fragile after holiday volatility

Despite the onchain signals, overall market sentiment remains cautious. Bitcoin has spent the past week trading in a relatively narrow range, with sharp moves in both directions around the Christmas period. Analysts at Santiment noted that fear, uncertainty and doubt spiked just as prices briefly moved higher, a pattern that has played out repeatedly in past cycles.

As prices pulled back, trader confidence appeared to fade once again. This suggests that many participants remain unwilling to chase upside until clearer confirmation emerges, particularly after a year marked by sharp corrections and uneven recoveries.

US-driven selling adds pressure

Additional headwinds appear to be coming from US-based traders. Coinbase-related data shows persistent negative readings in the Bitcoin Premium Index, which tracks the price difference between Bitcoin on Coinbase and global markets. A negative premium typically points to selling pressure or reduced risk appetite among US investors.

This dynamic suggests that while some long-term holders and whales are adjusting their positions, broader participation remains restrained. For now, the market appears caught between quiet accumulation by large players and continued caution among retail and regional investors.

Taken together, the data paints a mixed picture. Selling pressure from long-term Bitcoin holders is no longer accelerating, Ethereum whales are steadily adding exposure, but conviction across the wider market has yet to return in full.

Source: Coinglass