Panic Selling Pushes Bitcoin to Stronger Hands — CryptoQuant

CryptoQuant analysts are recording capitulation among newcomers in the Bitcoin market. According to their observations, holders who bought BTC less than a month ago are exiting positions at a loss, while more experienced participants are holding the asset and locking in profits. This indicates a market cleanup from speculators and a redistribution of supply in favor of confident holders.

Selling on Fear

Onchain data shows that investors who entered Bitcoin less than a month ago are facing an average unrealized loss of -3,5%. In recent weeks, their share of total supply has significantly decreased — a clear sign of capitulation. Newcomers are selling under the pressure of fear, realizing losses during the downturn.

According to Glassnode analysts, in previous cycles (2017 and 2021), Bitcoin reached all-time highs just 2–3 months after the same point in the cycle. While the past does not guarantee a repeat, the current phase resembles the traditional “cutoffs” that precede new upward impulses.

Experienced Players Stay Profitable

Unlike new entrants, the broader segment of short-term holders (1–6 months) remains in profit. Analysts report their average unrealized gain is +4,5%. These investors are holding their positions and not giving in to panic. The decrease in volume within this group reflects not selling, but rather a shift of BTC into the hands of those willing to hold longer.

Market Structure Strengthens

Analysts emphasize that the current redistribution is not market weakness but a structurally positive process. Bitcoins are moving from “weak hands” to more confident investors with lower entry prices. They add that such a cleanup from short-term speculative pressure creates conditions for more sustainable price support.

This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.