Bitcoin Market Faces Pressure from Long-Term Holders’ Actions

Glassnode’s chief analyst, CryptoVizArt, reports market weakness in Bitcoin due to long-term holders selling, stabilizing around 5% unrealized losses—similar to early 2022 conditions.

The slowdown in long-term holder selling suggests pressure on Bitcoin may ease, impacting the market stability as it mirrors pre-capitulation levels from earlier cycles.

Bitcoin Faces Decline as Holders Realize 3.8 Million BTC

The significant reduction in profit-taking by long-term Bitcoin holders has affected market sentiment, as reported by CryptoVizArt, Glassnode’s chief research analyst. Bitcoin’s price, currently at a critical range, reflects the ongoing pressure attributed to decreased selling activity. Unrealized losses have peaked in the cycle, yet remain below severe prior market downturns like the FTX collapse. Market absorption struggles with sustained historical unrealized loss levels, especially as profit-taking by long-term holders slows.

Bitcoin’s current price stability is at a critical juncture, with 20-30% of supply in a loss state. This scenario mirrors early 2022 conditions, showing pressure but no widespread capitulation, a factor contributing to hopes for market stabilization.

Long-term holder selling pressures absorption; slowing profit-taking prerequisite for bottom; unrealized losses >5% market cap, cycle high, below FTX. — CryptoVizArt, Chief Research Analyst, Glassnode source

Bitcoin Trading Volumes and Supply Loss Data Analyzed

Did you know? The current state of the Bitcoin market, reminiscent of Q1 2022, shows significant unrealized losses and stagnated profit-taking amid constrained price swings. Yet, these conditions remain less intense compared to the extremes of past bear market events.

According to CoinMarketCap, Bitcoin (BTC) trades at $87,187.40 with a market cap of $1.74 trillion and dominance of 59.09%. The circulating supply is 19,966,243 BTC with a maximum of 21 million. Trading volumes reached $43.41 billion, showing a 22.75% change over 24 hours, while 90-day market losses remain at 22.79% since December 24, 2025.

The Coincu research team notes that tensions in the Bitcoin market arise from both historical and current data which demonstrate reduced volatility compared to previous cycles. Future market outcomes may depend heavily on further regulatory advancements and potential adaptations in institutional investment strategies.