Bitcoin Long-Term Holders Halt Selling, Ethereum Whales Accumulate: A Shifting Crypto Landscape

A significant shift is underway in the crypto markets as Bitcoin’s long-term holders (LTHs) halt a multi-month selling spree, a move not seen since July. This pause potentially signals relief for a market navigating holiday-induced volatility. Concurrently, ‘smart money’ appears to be positioning for an Ethereum (ETH) rebound, with whales accumulating over 100,000 ETH in recent days.

Bitcoin LTHs Signal Potential Relief Rally

For the first time since mid-July, Bitcoin’s long-term holders – wallets that have held BTC for at least 155 days – have ceased their consistent distribution. According to on-chain data from CryptoQuant, the cumulative holdings of LTHs had steadily declined from 14.8 million BTC in July to 14.3 million BTC in December. This prolonged selling phase, which exerted downward pressure on Bitcoin’s price, has now transitioned into a subtle accumulation trend.

Crypto investor Ted Pillows highlighted this pivotal development on X, stating, “Long-term holders have stopped selling Bitcoin for the first time since July 2025. This is a good sign for a relief rally.”

Long-term holders have stopped selling $BTC for the first time since July 2025.

Things are looking good for a relief rally here. pic.twitter.com/t7Sl2hS9Ub

— Ted (@TedPillows) December 29, 2025

[IMAGE-PLACEHOLDER-1]

Market Caution Amidst Holiday Volatility

This potential reprieve for Bitcoin emerges against a backdrop of general market caution. Over the past week, BTC has traded within a tight range of $86,744 to $90,064, closing Monday around $87,314 with a 3.09% gain. The Coinbase Bitcoin Premium Index, a key indicator of institutional demand in the U.S., remains negative, reflecting persistent selling pressure and a diminished appetite for risk. The holiday season further exacerbated market dynamics, with Bitcoin spot ETFs recording substantial outflows of $782 million during Christmas week as investors rebalanced portfolios amidst scarce liquidity.

Analysts at Santiment observed a surge in “Fear, Uncertainty, and Doubt” (FUD) around the Christmas period. Bitcoin’s price briefly breached $90,000 before retreating below $87,000, a movement often contrary to prevailing trader sentiment. Discussions on X also leaned bearish, prompting some users to advise retail investors to strategically utilize a Dollar-Cost Averaging (DCA) strategy in the current low-liquidity environment.

Ethereum Whales Position for Rebound

In stark contrast to the cautious Bitcoin market, Ethereum (ETH) whales – addresses holding 1,000 or more tokens – have accelerated their accumulation. Since December 26, these large holders have added approximately 120,000 ETH, valued at roughly $354 million at current prices. This aggressive buying spree has pushed their control to about 70% of ETH’s total supply, a proportion that has steadily climbed since late 2024.

Analysts from Milk Road suggest this trend indicates the market might be underestimating Ethereum’s upside potential. They noted, “If this behavior continues, the market may not have fully priced in smart money’s expectations for Ethereum’s future direction.” On Monday, ETH traded at $2,944, up 3.27%, though its year-to-date performance has lagged Bitcoin amidst broader altcoin weakness. Garrett Jin, former CEO of BitForex, speculates that capital could flow from recently surging precious metals like silver, palladium, and platinum into BTC and ETH, potentially triggering a short squeeze.

[IMAGE-PLACEHOLDER-2]

Evolving Market Dynamics and Institutional Influence

These divergent behaviors underscore the increasing maturity of the cryptocurrency market as 2025 draws to a close, with institutional and whale dynamics playing an ever-dominant role in capital flows. Earlier this year, Bitcoin whales activated dormant holdings, initiating a “great redistribution” of billions of dollars after prices peaked above $126,000 in October, which was subsequently followed by a market correction exceeding 30%. VanEck’s mid-December ChainCheck report highlighted a dichotomy among “diamond hands”: while medium-term holders were selling, ultra-long-term holders remained steadfast.

As 2025 concludes, analysts caution that the market has undergone a structural transformation. The increasing dominance of algorithmic institutional trading and ETFs suggests that whale accumulation might no longer serve as a reliable signal for market bottoms, necessitating a more nuanced understanding of market movements.