Analysts reported that Bitcoin buyers who made acquisitions in the past month were the most affected during the recent sell-offs in the cryptocurrency market.
In the last 30 days, Bitcoin (BTC) has lost 13.5% of its value and has fallen over 29% from its all-time high reached in January, marking the most significant correction of the current bull market, as noted in a recent analysis.
Previous cycles have shown similar declines ranging from 30% to 50%. However, some market observers anticipated a different trajectory this time, citing increased institutional interest through spot BTC exchange-traded funds on Wall Street.
U.S. spot BTC ETFs amassed more than $100 billion in assets under management within a single year, as major firms attracted substantial capital inflows.
Short-term Bitcoin holders capitulating
Funds directed toward these ETFs have dwindled in recent weeks, leading to record-setting outflows. Last week alone saw nearly $1 billion exit these financial products, indicating that “institutional buyers have not yet returned with enough strength to offset the selling pressure,” analysts observed.
Stagnant price movements have also unsettled market sentiment. Indicators such as the Fear & Greed index have fallen to multi-year lows, which has further intensified sell-side pressure as short-term holders began to capitulate, according to the analysis.
Data from IntoTheBlock corroborated the analysts’ claims. The “Global In/Out of the Money” metric indicated that 20% of all BTC holders were experiencing unrealized losses, with most purchases occurring between $85,700 and $106,800, according to IntoTheBlock.
Historically, a slowdown in fresh capital inflows and shifts in cost basis tend to signal weakening demand. This pattern has become increasingly apparent as Bitcoin struggles to maintain key support levels. Without new buyers entering the market, Bitcoin risks prolonged consolidation or even further declines as weaker holders continue to exit.
Analysts remarked
Potential for recovery
Additional downward price movement could also follow as financial markets evaluate the impact of Trump’s tariffs and U.S. macroeconomic data.
Despite a cooling inflation rate and a jobs market exhibiting resilience, an uptick in underemployment and overall economic uncertainty have fostered a cautious approach among many investors. Nevertheless, analysts are optimistic about a bullish turnaround, provided the right conditions are met.
A crucial factor to monitor is whether demand from long-term holders or institutions reappears at these lower price points. Should larger investors begin to absorb the available supply, it could signal a return to accumulation, potentially stabilizing prices and improving market sentiment.