In a significant development for the cryptocurrency market, Galaxy Digital’s Head of Research, Alex Thorn, has unveiled new insights suggesting the end of Bitcoin‘s prolonged selling phase by long-term holders, termed the “Great Distribution.” This phase, characterized by substantial activities from previously dormant wallets, seems to have wrapped up by 2026. According to Thorn, these older wallets have seen a dramatic drop in reactivation, marking a decisive shift in Bitcoin’s distribution dynamics.
What Caused the Distribution Peak?
Historical patterns show that Bitcoin holders have typically become more active during bull markets, with notable activities recorded during rallies in 2017, 2021, and the 2024–2025 period. The latest peak of distribution activities occurred in late 2025, when those holding Bitcoin for one to two years moved almost 900,000 BTC in a single month. However, the market witnessed a slowdown in this selling momentum as 2026 commenced.
Did Quantum Computing Concerns Influence the Market?
Quantum computing risks have not driven the market as previously speculated. Thorn clarified that concerns about quantum threats do not seem to motivate large Bitcoin holders to sell. Instead, the fear of quantum computing advances has mainly affected potential new entrants, deterring them from the market rather than pushing established holders to exit. Galaxy Digital reported that none of the recent selling instances were influenced by quantum computing fears.
Efforts are underway to bolster the network’s defenses against potential quantum attacks. Bitcoin developers are actively working on technical upgrades to ensure the cryptocurrency’s resilience against future technological advancements. These initiatives are geared towards protecting the Bitcoin network long before quantum computing could become a legitimate threat.
- The “Great Distribution” by long-term holders has ceased by 2026.
- Older Bitcoin wallets are less active, with a marked decline in reactivation.
- Quantum computing risks are not a primary factor influencing current sell-offs.
- Bitcoin developers prioritize enhancing the blockchain’s security against future threats.
- The market has shifted to a stabilization phase with reduced selling pressure.
The cessation of selling from long-term Bitcoin holders signifies a transition towards stability within the cryptocurrency market. As developers concentrate on bolstering the network’s defenses, the market benefits from reduced sell-offs by seasoned holders, paving the way for consolidation and future growth. Thorn highlighted, “Audience concerns about quantum risks mostly discourage potential new investors from entering the Bitcoin market, rather than prompting veteran holders to exit.”
