Older Bitcoin Holders Are Spending Their BTC Again: Profit-taking or Strategic Reallocation?

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Bitcoin Holders: The Great Spending Spree! 💸

As the fervor of the Bitcoin rally begins to wane, it appears that the long-suffering BTC nestled in the wallets of our venerable long-term holders has decided to stretch its legs once more. One must ponder: are these movements a delightful dance of profit-taking, or merely a strategic pirouette towards further price appreciation? 🎭

According to the esteemed market sages at Glassnode, the recent flurry of spending has propelled the aggregate volume from the one-year to five-year cohorts to a staggering $4.02 billion. A figure so grand, it could make even the most stoic of investors raise an eyebrow! This, dear reader, is the highest level we have witnessed since the balmy days of February.

Bitcoin OGs Are Spending Again

In a revelation that is as shocking as finding a cucumber in a salad, Glassnode informs us that this is the fifth-largest spending spike of this bull cycle. The culprits? Our beloved older Bitcoin holders—those who have clutched their coins with the tenacity of a cat on a hot tin roof for three to five years.

Since the dawn of this bull run, these seasoned investors have unleashed torrents of BTC following each rally. Notable spending sprees have graced the months of March, October, November 2024, and February 2025. One can only imagine the jubilation in their hearts as they part with their precious coins!

The pièce de résistance of this cycle occurred in October 2024, when a jaw-dropping $9.25 billion was spent, led by the one- to two-year cohort. The second and third largest expenditures were recorded in March 2024 and February 2025, with $6.11 billion and $5.42 billion, respectively, courtesy of the two-year to three-year cohort. And let us not forget the fourth-largest, a modest $4.39 billion in November 2024, driven by the three-year to five-year cohort. Truly, a spectacle to behold! 🎉

Now, the three-year to five-year Bitcoin holders are once again leading the charge with a princely sum of $2.16 billion. Glassnode has noted that this is their second-largest outflow of the cycle, following a rather extravagant $6 billion outflow in March 2024. Meanwhile, the two-year to three-year and one-year to two-year cohorts have spent a mere $1.41 billion and $450 million, respectively. How quaint! 🤑

Consolidation or Deeper Correction?

Yet, amidst this flurry of activity, one cannot help but wonder whether these OG wallets are merely waking from their slumber to collect profits or if they are engaging in a more strategic reallocation of their holdings. BTC has been in a correction mode for the past six days, slipping more than 4% from its recent all-time high of $111,970, as per the ever-reliable CoinMarketCap.

As I pen these words, BTC hovers around $107,540, with a 3% weekly decline and a 1.2% drop in the last 24 hours. If the goal of our older Bitcoin holders is indeed reallocation, we may witness further consolidation in the coming days. However, should they be inclined to take profits, we might find ourselves staring into the abyss of a deeper correction, perhaps even dipping below the fabled $106,000 mark. Ah, the drama of it all! 🎭

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2025-05-29 11:30