Who Is Selling Bitcoin at Record Highs Above $120,000?
Bitcoin (BTC) recently surged to new record highs above $124,000 in early trading on August 14, 2025, but the rally quickly lost steam, slipping back toward the $123,000 mark. This pattern of rapid ascent followed by a pullback has been consistent since mid-July, raising questions about who is cashing out of bitcoin at these elevated price levels.
Long-Term Holders Accelerate Selling
Blockchain analytics reveal that long-term bitcoin holders—defined as wallets holding BTC for 155 days or more—have significantly accelerated their selling activity in recent weeks. According to data from Bitcoin Magazine, over 300,000 BTC controlled by these long-term wallets have been offloaded in the past four weeks. This surge in selling pressure from older holders appears to be dampening the momentum of bitcoin’s price rally.
Gabriel Halm, senior blockchain analyst at Sentora, explained, “It may be linked to concentrated selling pressure from long-term holders who have recently accelerated their selling. Historically, long-term holders’ selling phases are well-defined within bitcoin’s market cycles. However, following accumulation during the Q2 pullback, this recent uptick in selling suggests a possible shift in the market’s structure.”
Additionally, several dormant wallets—those inactive for over a decade—have become active again, moving coins on-chain presumably for profit-taking. Blockchain analytics firm Glassnode highlighted that although profit-taking by long-term holders continues, the pace has slowed compared to July’s robust activity when profit realizations often exceeded $1 billion per day.
Institutional Activity and Market Dynamics
Institutional investors have also played a role in shaping the current bitcoin market. The persistent selling of higher strike call options, often by institutions seeking to generate extra yield on their spot holdings through a strategy known as call overwriting, has contributed to a notable decrease in volatility. Sam Gaer, chief investment officer at Monarq Asset Management, noted, “Call overwriting activity by long-term holders continues in an apparently unabated way, causing a volatility ‘meltdown.’ Weekend implied volatility has dipped into the teens—a level unprecedented in my experience—which marks a sign of a maturing market.”
This reduced volatility environment could be responsible for the moderation of bitcoin’s price advances, even though demand remains healthy.
Signs of Strong Demand Amid Macroeconomic Tailwinds
Despite the selling pressure from long-term holders, on-chain data points to significant underlying demand. Over 1.88 million unique addresses have collectively purchased around 1.3 million BTC at an average price of about $118,000, forming a strong support layer that is preventing a sharper decline.
Furthermore, the broader macroeconomic environment seems to favor bitcoin’s price stability and growth potential. Market participants are increasingly adjusting to a “new normal” of inflation rates higher than the Federal Reserve’s 2% target in the post-pandemic world. This expectation underpins hopes that the Fed will begin cutting interest rates as soon as September, which could bolster risk assets like cryptocurrencies.
Steve Gregory, founder of Vtrader, anticipates renewed interest in bitcoin as funds potentially rotate back from Ether (ETH). “With bitcoin’s 3-month volatility hitting its lowest point since September 2023 and 95% of ETH wallets currently in profit, traders may logically shift capital back to BTC. We may therefore see a break of the $120,000 level soon,” he said.
Conclusion
While bitcoin’s recent rally above $120,000 to record levels has been tempered by increased selling from long-term holders and institutional dynamics such as call overwriting, the accumulation data and strong macroeconomic fundamentals suggest the path of least resistance could remain upward. The market now watches to see if these forces will continue to balance out, allowing bitcoin to build upon its recent highs.
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Omkar Godbole
Co-Managing Editor & Markets Analyst, CoinDesk
Disclaimer: Portions of this article were generated with AI assistance and subsequently reviewed by the editorial team to ensure accuracy and compliance with CoinDesk’s standards.