Short-term Bitcoin activity drops to 30%, easing selling pressure.
Annual address activity rises, hinting at long-term profit-taking.
Market enters mid-phase of selling by long-term holders.
Bitcoin’s on-chain data reveals a shift in market dynamics. The normalized Bitcoin address activity — a key measure of how actively coins are moving — has declined sharply. It dropped from 60%, the level seen when Bitcoin hit its all-time high of $124K, down to just 30%.
This steep drop signals a cooling in short-term transactional intensity. Fewer coins are being moved on-chain, which means selling pressure from short-term holders has eased. In other words, those who tend to move or sell their Bitcoin quickly are currently stepping back, reducing immediate supply and volatility in the market.
Long-Term Holders Begin Realizing Gains
While short-term activity slows, another trend is emerging. The annual normalized address activity (NAA) has climbed from 30% — recorded when Bitcoin was around $80K — to 40%. This indicates that more long-term holders are beginning to take profits as Bitcoin prices rise.
For comparison, the highest level of address activity in this cycle was seen in September 2023 at 85%, with Bitcoin priced at just $37K. That period reflected heavy selling by long-term holders. The current 40% level suggests we are now in a mid-phase of this cycle — not at peak selling, but with clear signs that the long-term seller base is expanding again.
This mix of lower short-term activity and increasing long-term selling shows a maturing market dynamic. The reduced immediate selling pressure may offer temporary price support, but the gradual return of long-term sellers adds a layer of future resistance.
Bitcoin Normalized Address Activity has dropped from 60% (the level at which the $124K ATH was formed) to 30%. This reflects a cooling in transactional intensity and, consequently, a weakening of short-term supply: fewer coins are being moved on-chain, and selling pressure has… pic.twitter.com/AuiZ1bsmnD
— Axel Adler Jr (@AxelAdlerJr) August 28, 2025
What It Means for Bitcoin Investors
For traders and investors, these metrics offer valuable insights:
Short-term volatility may decrease as fewer quick trades occur.
Long-term holders, often seen as smart money, are beginning to cash in profits — a sign that the current rally may be maturing.
The market appears to be transitioning from a high-activity phase to a more measured, strategic phase of profit realization.
Understanding these behavioral shifts is crucial for anyone navigating the crypto markets today.
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