Bitcoin's Long-Term Holders (LTHs) Are Finally Cooling Down: Is the Distribution Phase Coming to an End?
Bitcoin's LTHs, the resilient diamond hands of the crypto world, have been under intense pressure in recent months, but a new trend suggests a shift in their behavior.
On-chain data reveals that the netflow of Bitcoin's long-term holders has been rising, indicating a decrease in selling pressure. This is a significant development, as it suggests that the months-long distribution phase may be drawing to a close.
The Diamond Hands Effect
Bitcoin's LTHs are a group of investors who purchased their tokens more than 155 days ago. Statistically, the longer an investor holds onto their coins, the less likely they are to sell them. This makes LTHs a crucial indicator of the market's long-term sentiment.
However, despite their resilience, LTHs still participate in selling during certain parts of the cycle. A recent phase of selling has been ongoing, as shown by the chart shared by Glassnode analyst Chris Beamish.
The Distribution Phase
The Bitcoin LTH Net Position Change indicator, which tracks the monthly net amount of BTC entering or exiting the group's combined balance, turned negative as the cryptocurrency's price saw a bearish shift in the last quarter of 2025. This indicated continued distribution from the diamond hands.
The selloff intensified as BTC crashed to its low around $60,000 last month, suggesting that the volatility scared even some of the more resolute hands into parting with their tokens. However, since the negative peak in the indicator coinciding with the price lows, the Bitcoin LTH Net Position Change has been climbing back up.
A Shift in the Wind?
Today, the value of the indicator is still red, suggesting continued selling pressure on the monthly timeframe, but the degree of it is notably lower. This suggests that the selling pressure from seasoned holders is moderating as BTC stabilizes.
It remains to be seen whether the Bitcoin LTH Net Position Change will continue to improve in the near future or if the diamond hands aren't done selling yet. However, the recent trend is a positive sign for the market, and it may indicate that the distribution phase is finally coming to an end.
