Bitcoin Under Pressure: ETF Selling Accelerates as Long-Term Holders Retain Supply

TLDR:

• Bitcoin ETFs recorded $634.8M outflows over two days amid BTC correction.
• Fear & Greed Index at 11 shows extreme market fear.
• Miners reduce BTC sent to exchanges, easing short-term selling pressure.
• Whales accumulated 694K BTC in 60 days, maintaining long-term supply discipline.

Bitcoin is under pressure as short-term selling accelerates, while long-term holders maintain strategic retention. 

Bitcoin traded at $86.9 at the time of publication, posting a slight daily gain of 0.85% but experiencing a weekly decline of 4.01%. Market dynamics show a sharp contrast between institutional outflows and continued accumulation by major holders.

Recent movements indicate that ETF liquidations are weighing on market sentiment. 

While ETFs report large-scale outflows, miners and whales are signaling supply discipline, suggesting the market is navigating immediate stress rather than fundamental weakness.

Bitcoin ETF Outflows Drive Short-Term Market Stress

Bitcoin is under pressure as ETFs recorded withdrawals totaling $634.8 million over two days. 

This level of capital movement emphasizes near-term selling pressure among institutional participants. Exchange-traded funds, often considered key liquidity providers, are currently reducing exposure amid ongoing market volatility.

Additional sentiment indicators reinforce the selling trend. The Coinbase Premium Gap sits at -16.04, reflecting weaker buying demand, while the Fear & Greed Index at 11 points to extreme fear among market participants. 

On-chain data shows SOPR at 0.98, signaling coins are being sold at a loss and short-term holders are capitulating.

Short-term stress also emerges from broader on-chain metrics. Supply in Loss has risen to 35%, while MVRV-STH is at 0.84, confirming that recent entrants are experiencing negative returns. 

Social media commentary from Cryptoquant analyst GugaOnChain notes that this pressure is concentrated among short-term holders rather than long-term participants.

Long-Term Holders Retain BTC, Reducing Available Supply

While ETF selling accelerates, long-term holders continue to tighten supply. The Puell Multiple at 0.85 points to moderate undervaluation, indicating miners may limit BTC sales during this period. 

Reduced distribution from miners suggests that supply pressure is being managed despite market stress.

Miner activity further supports retention trends. The Miner Position Index at -0.81 shows fewer coins moving to exchanges, mitigating selling pressure. 

This indicates miners are holding strategically, maintaining market stability during a correction.

Whale accumulation reinforces the long-term outlook. Addresses holding between 1,000 and 10,000 BTC accumulated roughly 694,000 BTC over the past 60 days. 

The MVRV-LTH of 1.55 shows long-term holders remain profitable, with continued conviction in Bitcoin’s future. Michael Saylor’s holdings, exceeding 671,000 BTC, exemplify the persistence of major market players despite short-term volatility.

Bitcoin is under pressure from institutional selling, yet long-term holders are reinforcing supply discipline. 

Market trends suggest a divergence between immediate stress and strategic retention, highlighting contrasting behaviors in current trading dynamics.