- Coinbase’s 800,000 BTC transfer in November 2025 distorted on-chain LTH metrics, creating a false narrative of massive selling.
- Adjusted charts reveal normal LTH distribution patterns aligned with historical Bitcoin cycles, not panic dumping.
- Analysts emphasize adding context to raw data to avoid misleading market interpretations picked up by media.
The volatile world of cryptocurrency, on-chain data often drives market narratives, but recent claims of Bitcoin long-term holders (LTHs) dumping their holdings en masse have sparked unnecessary panic. A viral post from analyst @cryptorover declared, “Bitcoin long term holders are SELLING LIKE CRAZY!” accompanied by a chart showing dramatic supply changes. This take quickly gained traction, even catching the eye of mainstream outlets like Bloomberg. However, a deeper dive reveals this interpretation is flawed, thanks to a massive internal movement by Coinbase that skewed key metrics.
Distorted Metrics Fuel False Panic
On-chain expert @Darkfost_Coc , a verified author for CryptoQuant, stepped in to set the record straight. He highlighted how Coinbase transferred nearly 800,000 BTC on November 22 and 23, 2025, when Bitcoin hovered around $85,000. This wasn’t a market sell-off but an internal operation that destroyed existing long-term unspent transaction outputs (UTXOs) and generated new ones. The ripple effect? Distorted data across platforms, impacting UTXO-based indicators like LTH supply, short-term holder (STH) cost basis, realized value, and trading volumes.
Adjusted Charts Reveal Cycle Normality
To illustrate, @Darkfost_Coc shared an adjusted chart titled “LTH Supply Change (Coinbase Fix).” The visual overlays LTH supply (in black), Bitcoin price (in purple), and 30-day moving average supply changes (green for increases, red for decreases) from 2015 to 2025. Pre-adjustment, the data suggested unprecedented LTH distribution. But after isolating and removing Coinbase’s transactions, the picture changes dramatically. Green spikes during bull runs show accumulation, while red dips indicate distribution—patterns that align with historical cycles rather than signaling a mass exodus.
Lessons for On-Chain Data Interpretation
This correction underscores a critical lesson in crypto analysis: context is king. As @Darkfost_Coc quotes a fellow analyst, “Part of being a great analyst is adding context and not taking the data at face value.” Blindly accepting raw metrics can lead to misleading headlines, influencing trader sentiment and market behavior. Looking ahead, the adjusted data shows LTHs resuming distribution in a “completely normal way,” consistent with this bull cycle’s progression.
Bitcoin’s price, after peaking near $100,000 earlier this year, has corrected but remains resilient. For investors, this serves as a reminder to verify sources and adjustments before reacting. In a space where data is abundant but interpretation varies, diligence separates signal from noise.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
