Bitcoin long-term holders halt selling run after unloading 260,000 BTC

Bitcoin's long-term holders have paused a month-long distribution phase after selling roughly 260,000 BTC into the market, on-chain data shows. Glassnode reported that the net position change for wallets older than 155 days has moved back to neutral in recent sessions, marking a shift from sustained outflows recorded between mid-August and the first half of September. A crypto industry source said the reversal points to the conclusion of one of the year's sharpest profit-taking periods. The selloff began in mid-August 2026 as older wallets increased transfers to centralized exchanges. CryptoQuant data showed repeated spikes in Coin Days Destroyed, indicating long-dormant coins were being spent. Analysts at the platform said the magnitude of liquidation briefly exceeded the distribution intensity seen at prior cycle peaks, adding friction to spot prices. On the other side of the trade, demand was led by short-term participants and institutional vehicles. Exchange-traded fund flow data indicated institutions steadily absorbed portions of the newly circulating supply, a pattern market watchers describe as a typical liquidity rotation during macroeconomic consolidation. Signs of easing pressure have also appeared in exchange metrics. The exchange balance indicator pointed to slower inflows into temporary custody wallets over the past 48 hours, while the total amount of Bitcoin held on exchanges declined over the last 24 hours. Technical data shows daily outflows drifting back toward their 30-day moving averages. On-chain analysts argue that a smaller pool of immediately available supply could provide a technical cushion against recent volatility. Attention now turns to the US Federal Reserve's policy announcement due on September 16, 2026, when the central bank is set to deliver its benchmark interest rate decision.