Recent on-chain data indicates a significant shift in Bitcoin (BTC) long-term holder (LTH) behavior as of October 29, 2026. According to analysis from CryptoQuant, the volume of BTC distribution from these seasoned investors has declined by 22% over the last week, dropping from 310,000 to 240,000 BTC. This reduction in selling activity coincides with a slight contraction in the unrealized profit margins for the cohort, suggesting a period of market stabilization despite a minor decrease in the price-to-cost ratio.
MVRV Ratio and Profitability Metrics
Analysis provided by CryptoQuant expert Axel Adler Jr. highlights that the LTH-MVRV ratio fell from 1.67 to 1.65 between October 22 and October 29. This metric measures the market value of Bitcoin relative to the average realized price at which long-term holders acquired their assets. Currently, the market price remains 65% higher than the group's average cost basis, which stands at approximately $43,000.
The MVRV (Market Value to Realized Value) ratio is a key indicator used to assess whether an asset is overvalued or undervalued relative to the "fair value" of the coins currently in circulation.
Despite the two percentage point narrowing of the profit buffer this week, long-term holders—defined as those who have held their assets for at least six months—continue to maintain a substantial cushion. With Bitcoin trading near the $71,000 mark, the incentive for panic selling appears low, even as the unrealized profit margin experiences a marginal retreat.
Easing Selling Pressure on the Blockchain
The most notable finding in the recent report is the sharp decrease in the 30-day distribution volume. This metric tracks the daily decreases in supply held by long-term addresses. The decline from 310,000 BTC to 240,000 BTC suggests that fewer long-term participants are liquidating their positions or moving them to exchanges for potential sale.
LTH still holds a considerable unrealized profit buffer, and the decrease in distribution volume suggests easing selling pressure; a rebound in MVRV would indicate the profit buffer is recovering relative to the cost basis.
This slowdown in distribution is often interpreted by market analysts as a sign of increased conviction among veteran investors. While the profit buffer has slightly narrowed, the lack of aggressive selling at the $71,000 level implies that the cohort may be anticipating further upside or a more favorable macroeconomic environment before distributing additional supply.
The current state of the Bitcoin blockchain reflects a cautious but stable holding pattern for its most influential demographic. While the MVRV decline indicates a temporary cooling of profitability relative to entry prices, the 22% reduction in distribution serves as a counterweight, potentially reducing the immediate overhead supply on the market. A future rebound in the MVRV ratio would signal that the profit buffer is expanding once again, potentially leading to a new phase of market cycles.
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For educational purposes only. Nothing here constitutes financial or investment advice. Crypto markets are highly volatile — always DYOR before making any decisions.
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