Bitcoin Approaches All-Time High as Retail Investors Sell to Larger Holders

Bitcoin (BTC) is steadily approaching its all-time high of $111,814, recorded in May 2025, and is experiencing a significant shift in its holder composition. Recent on-chain data indicates that smaller investors, often referred to as "weak hands," are selling their holdings to larger investors, marking a notable change in investor sentiment towards the largest digital asset.

According to a recent analysis, Bitcoin’s supply is moving from retail investors to larger holders. Retail investors, those holding less than one BTC, have seen a significant reduction in their holdings, with total balances dropping by 54,500 BTC year-over-year, to 1.69 million BTC. This cohort has experienced outflows of approximately 220 BTC per day on average.

In contrast, large holders—wallets with 1,000 BTC or more—have expanded their total BTC exposure by 507,700 BTC over the same period, bringing their combined holdings to 16.57 million BTC. This group is now seeing average inflows of around 1,460 BTC per day. Institutional interest in Bitcoin is also rising at a historic pace, with institutions currently absorbing about seven times more BTC than retail investors are selling.

The post-halving issuance of BTC is currently around 450 BTC a day, raising the possibility of a true “supply squeeze” amid strong buying pressure. BTC underwent its latest halving in April 2024, when the mining reward for each block on the chain was reduced from 6.25 BTC to 3.125 BTC. This reduction in supply, coupled with increasing demand from larger investors, could drive the price of Bitcoin higher.

According to the analysis, meaningful retail interest has yet to kick in during this cycle. Unlike previous market tops, where retail investors aggressively accumulated BTC, current data shows them exiting the market. This suggests that the bull run may still have more room to grow. Another metric that points toward the market top being far from the current price level is the Bitcoin 30-day MA Binary CDD, which indicates that the BTC market is “far from overheating.”

As BTC remains range-bound between $100,000 and $110,000, the short-term holder (STH) realized price—a key psychological support level—is steadily climbing. It currently sits near $98,000, reflecting rising investor conviction. Further on-chain data also shows that both retail and institutional holders are reducing exchange deposits, signaling reluctance to sell at current levels. This behavior supports the idea that many are positioning for further upside.