- Loss-selling among Bitcoin holders surged 29%, but conviction buyers show market resilience.
- Shakeout favors long-term holders and is making way for accumulation.
Bitcoin [BTC] markets are once again caught in a wave of turbulence. Prices have slipped, and short-term profits are thinning.
A growing number of holders are choosing to sell at a loss — up nearly 29% since the 10th of June — just as signs of conviction buying quietly resurface.
Is this a collapse, or something more?
Fortune favors the patient
The Bitcoin market has entered a unique phase; one where patience is aggressively rewarded.
In previous cycles, both long-term and short-term holders shared in the upside, with STHs capturing up to 63% in profits even as LTHs peaked.
Source: X
This time, however, short-term participants are getting crushed. While LTH profit supply has risen to 75%, STH profits have plummeted to a mere 12%; a brutal divergence.
A tale of two buyers
Since the 10th of June, the number of Bitcoin holders selling at a loss has surged nearly 29%, climbing from 74,000 to over 95,000. It’s clear that weak hands are tapping out.
But what adds nuance is that conviction buyers have also risen; a subtle indicator that not everyone is giving in to fear.
Source: Glassnode
Instead of running, some investors are seizing the downturn to lower their cost basis. The market may look bruised, but strategic repositioning is underway.
Capitulation and conviction are moving together, and only one side will come out on top.
Stronger hands will inherit the rally
What we’re witnessing is a classic shakeout. Bitcoin cycles often cleanse the market of weak hands before paving the way for a stronger, more resilient base.
As short-term sellers capitulate, long-term holders and conviction buyers are stepping in, making way for a more stable accumulation phase.
This, while painful in the short run, is essential for sustainable growth. Bitcoin has always rewarded patience, and this phase appears no different.
