Bitcoin Correction Deepens As Long Term Holders Begin To Sell

Bitcoin is wavering and taking a brutal shock: nearly 600 billion dollars are now unrealized losses. At 66,000 dollars, the market reveals fragility rarely seen at this scale. A significant part of the supply is under pressure, while some long-term investors are starting to give in. Between capitulation and demand exhaustion, this phase marks a turning point in the current market dynamics. It remains to be seen whether this tension signals a simple adjustment… or a deeper cycle change.

A Market Under Pressure: Unrealized Losses and Capitulation

The bitcoin correction has taken significant magnitude. The price fell to around 66,928 dollars, a decline of 47 % since its all-time high of 126,000 dollars reached in October 2025.

This drop places a significant part of the market in difficulty, as the following data shows :

• About 8.8 million BTC are held at a loss ;
• Nearly 598.7 billion dollars in unrealized losses ;
• More than 44 % of the circulating supply affected.

Glassnode highlights the magnitude of this situation: “historically, resolving an excess supply of this magnitude requires significant redistribution of bitcoins, from investors selling at a loss to new buyers ready to enter at lower prices”.

At the same time, long-term holders are beginning to give in under pressure. An active capitulation phase is observed, with about 200 million dollars of realized losses, a signal rarely seen outside periods of intense stress.

These elements indicate an advanced phase of market tension. The combination of massive unrealized losses and realized sales by reputedly strong investors marks a regime shift. Such a configuration has historically preceded redistribution phases, where assets move from weakened hands to new entrants.

Declining Demand and Absent Investors

Beyond losses, the data reveals a demand deterioration. Since the end of 2025, the market shows persistent contraction, with an estimated negative apparent demand of -1,623 BTC. Glassnode highlights that “the sustained decline in demand […] confirms that the market is still in a distribution phase.” In other words, outflows dominate, and new buyers struggle to absorb the supply.

This weakness is accompanied by notable disengagement from institutional and American investors. The Coinbase Premium remains negative, signaling a lack of appetite in the United States, while bitcoin-related investment products record 194 million dollars in net outflows over a week. Investors exposed via ETFs, with an average cost around 83,408 dollars, also face pressure, exacerbating the overall imbalance.

In this context, the market seems engaged in a classic redistribution phase of bear cycles. The absence of strong buyers combined with the gradual capitulation of long-standing holders could prolong this phase. However, the return of structured demand and investors capable of absorbing the supply appears as the necessary condition to stabilize the BTC price and consider a new cycle.