- Short-term Bitcoin holders are selling at a loss, and mid-term holder exchange deposits have surged to levels last seen near the 2025 all-time high.
- Market sentiment has plunged back into “extreme fear” territory, coinciding with 11 consecutive days of outflows from spot Bitcoin ETFs.
- Despite the sell-off, whale activity involving transactions over $100,000 has surged to its highest level since late April, a potential sign of accumulation.
Bitcoin (BTC) slipped below $70,000 during European trading on Tuesday, a level not seen since April, as sellers took control. Analysts attribute the drop to fading geopolitical hopes and a renewed phase of distribution where investors are realizing losses.
Consequently, the Short-Term Holder SOPR metric dropped below 1, showing recent buyers are now selling at a loss. CryptoQuant analyst Rei Researcher also noted the six-to-twelve-month holder group has simultaneously activated potential selling positions.
This cohort’s exchange inflow volume, a “huge barrier to recovery momentum,” needs absorption to prevent deeper corrections. Glassnode data further confirms the distribution phase, with the realized profit/loss ratio deteriorating to -0.87.
Meanwhile, the Crypto Fear and Greed Index hit 23, signaling a return to “extreme fear.” This sentiment shift follows Bitcoin’s 9.3% weekly drop and extends a streak of outflows from spot Bitcoin ETFs to eleven days.
However, some on-chain signals offer a contrasting narrative. Santiment reported the network saw its most $100,000+ transactions since April 22 as the price dipped. “This is historically a strong sign of whale accumulation,” the platform stated.
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