Bitcoin is currently in a prolonged distribution phase, with investors shifting from accumulation to liquidation. This change has increased selling pressure, causing Bitcoin’s price to decline. The market has entered a typical phase after reaching all-time highs, which began in early 2025 following a significant price correction.
Recent data shows that all wallet sizes are contributing to this selling trend. Both large and small holders have reduced their positions, especially since mid-January. Many investors are selling their assets at a loss, which has intensified the market downturn.
Investor sentiment has shifted significantly. As uncertainty grows, many are hesitant to buy more Bitcoin. Macroeconomic factors, such as financial instability and trade tensions, have added to this cautious outlook.
Earlier in the cycle, investors were eager to buy during price dips, expecting prices to rise. However, as liquidity decreased and risks increased, confidence in further accumulation has waned.
The lack of buying activity at lower price levels suggests that capital is rotating out of Bitcoin. This could lead to a prolonged consolidation phase until a strong support level is established. Bitcoin may continue to fluctuate until the market finds stability.
Despite these challenges, some analysts see signs of stabilization. They note that the selling activity from long-term holders is slowing down, which may indicate a return of confidence among experienced investors. If this trend continues, it could lead to reduced market supply and potential stabilization.
Bitcoin’s price remains volatile, influenced by external economic and geopolitical factors. While the market is uncertain, signs of reduced selling pressure could indicate a possible shift in momentum. Whether this will lead to a stronger recovery or an extended consolidation period is still uncertain.
