Approximately 200,000 Bitcoin have transferred from long-term holder wallets recently, indicating a potential custody change rather than traditional selling activity.
By James Van Straten|Edited by Shaurya Malwa Aug 7, 2026, 9:24 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on LTH Supply (Glassnode)SummaryShow- Long-term holder supply has decreased by around 210,000 Bitcoin, dropping from nearly 15 million BTC to about 14.7 million BTC.
- This shift occurs while Bitcoin is trading nearly 50% lower than its peak, contrasting with prior distribution events that happened near market highs.
- The movement is associated with the Coldcard security breach, prompting users to transfer Bitcoin to newly created wallets or regulated custody services.
The repercussions of the Coldcard security breach are now evident on the blockchain.
Data from Glassnode indicates that approximately 210,000 BTC have exited long-term holder (LTH) wallets in the last week, marking the largest drop since December 2024, when Bitcoin neared the $100,000 mark for the first time.
Glassnode defines long-term holders (LTHs) as entities whose Bitcoin has been inactive for around 155 days, or just over five months. This group is often viewed as the “smart money” in the market, as they typically hold through short-term price fluctuations.
The current long-term holder supply stands at about 14.7 million BTC, down from just under 15 million BTC prior to the Coldcard incident, which was close to an all-time high.
Historically, significant spending by long-term holders has occurred during strong market phases or at market peaks. Similar distribution trends were seen in March 2021, March 2024, and December 2024, as experienced holders capitalized on rising demand.
However, this recent movement is taking place at market lows, with Bitcoin priced around $64,000, approximately 50% below its October all-time high.
This spending activity from this group does not reflect profit-taking but rather a shift in how Bitcoin is being stored following the Coldcard incident. Additionally, Bitcoin has not reached new lows since the breach.
The vulnerability originated from inadequate randomness in certain Coldcard firmware, which allowed attackers to reconstruct wallet recovery phrases and siphon off Bitcoin. Thousands of wallets were impacted, with losses estimated to be as high as $114 million. In response, Coldcard advised affected users to generate new wallets and transfer their funds, as merely updating the firmware would not secure potentially compromised keys, according to CoinDesk.
The decline in long-term holder supply may reflect users transferring Bitcoin into newly created wallets with enhanced security measures. Additionally, some holders could be moving their assets to regulated custodians or spot Bitcoin ETFs as they reassess the risks associated with self-custody.
ETF inflows provide some positive momentum; U.S. spot Bitcoin ETFs attracted around $754 million in the past week, with BlackRock’s iShares Bitcoin Trust (IBIT) accounting for the bulk of these inflows.
It is important to note that the movement of Bitcoin on-chain does not necessarily indicate selling. In this instance, the reduction in long-term holder supply may signify a broader transition in Bitcoin custody rather than a simple loss of confidence.
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