Bitcoin's Retreat to $85,000 Shifts Losses to New Entrants
Bitcoin fell to $85,800 on Monday as both new large investors and long-term holders contributed to ongoing sell pressure. Entities that accumulated over 1,000 BTC in the past 155 days now face significant unrealized losses, at levels last seen in 2023, while older whales remain in profit. Wallets that bought within the past three months have a profit/loss margin of -25%, marking levels associated with bull market reversals. Short-term holders—those holding for under six months—have added 768,000 BTC in the last 30 days, indicating accumulation. In contrast, long-term holders’ net positions have dropped by 755,000 BTC, reflecting distribution. Since July 2025, supply held by long-term holders declined by around 1.78 million BTC; short-term holdings rose by 1.8 million BTC. This shift reflects typical late-cycle market behavior characterized by profit-taking and capital rotation, with institutional buyers—such as ETFs—absorbing supply. Current conditions suggest a wealth transfer and increased volatility but do not indicate a structural market top. Bitcoin is down nearly 4% in 24 hours.
