Bitcoin Structural Shift as 'Great Distribution' Ends Amid Fading Sell Pressure

Key Facts

In a development marking a pivotal shift in supply dynamics, Galaxy Digital's Head of Research announced the conclusion of Bitcoin's 'Great Distribution' phase following two years of sustained selling pressure. According to reports, the reactivation of dormant old wallets has plummeted by 50% in 2026 compared to 2025 levels, signaling an exhaustion of the long-term holder liquidation that previously capped price appreciation.

This structural shift reframes the recent narrative dominated by spot ETF outflows, as the decline in old wallet activity significantly reduces the overhead supply. Compared to previous cycles of distribution, market data suggests that Bitcoin's resilience despite cooling institutional demand reflects a transition toward a tighter supply environment, per market data, potentially offsetting the impact of lower spot trading volumes.

With Bitcoin holding steady at $72,500 (as of July 10, 2026 close), market participants are watching for a potential breakout fueled by this diminishing sell pressure. From a macro perspective, the FOMC Minutes released on July 8, 2026, continue to anchor sentiment, with upcoming inflation data serving as the next major catalyst that could ignite a fresh rally in a supply-constrained market.