CryptoQuant analyst Axel Adler Jr said Bitcoin long-term holders sharply increased distribution during the market’s late-August rebound. From Aug. 18 to Aug. 28, the 30-day cumulative distribution of LTH wallets rose from 174,500 BTC to 281,900 BTC, a 61.5% increase, reaching its highest level of 2026 on Aug. 28. Adler said the metric accelerated during Bitcoin’s fast recovery after a short squeeze, suggesting long-term holders were using the price rebound to take profits.
At the same time, the LTH MVRV ratio climbed from 1.31 on Aug. 18 to 1.64 on Aug. 27, and was still around 1.6 on Aug. 31. According to Adler, that means the market value of Bitcoin held by long-term holders remained about 60% above their average realized value. In his view, the rebound lifted both profitability and distribution speed for long-term holders, setting up conditions for more profit-taking. If Bitcoin’s price stays stable, he said, long-term holders may continue releasing supply, adding extra selling pressure. The next market test is whether this elevated distribution continues and whether fresh demand can absorb the additional supply.
CryptoQuant analyst Axel Adler Jr said Bitcoin long-term holders, or LTHs, increased distribution sharply between Aug. 18 and Aug. 28. The 30-day cumulative distribution rose from 174,500 BTC to 281,900 BTC, up 61.5%, and reached its highest level of 2026 on Aug. 28.
Distribution accelerated during the rebound
Adler said the metric picked up noticeably during Bitcoin’s rapid rebound after a short squeeze. In his reading, that shows long-term holders were using the recovery in price to lock in profits.
LTH MVRV moved from 1.31 to 1.64
Over the same period, LTH MVRV climbed from 1.31 on Aug. 18 to 1.64 on Aug. 27, and was still around 1.6 on Aug. 31. That indicates the market value of Bitcoin held by long-term holders remained roughly 60% above their average realized value.
Adler said that even as distribution activity increased, long-term holders were still sitting on sizable unrealized gains. He added that the post-short-squeeze price rebound lifted both profitability and the pace of token distribution, creating room for additional profit-taking.
Focus turns to whether demand can absorb supply
If Bitcoin holds steady, Adler said long-term holders may keep releasing supply, which would add selling pressure to the market. The key question now is whether elevated distribution from long-term holders will continue, and whether new buying can absorb that extra supply. If not, the market could face renewed price pressure.
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