As of the end of 2025 and the beginning of this year, Bitcoin experienced steady declines. While these declines turn every rise into a short selling opportunity, the risk is greater in today’s conditions. BTC is at its local peak and short-term investors, who have been making good profits from short selling for months, have activated the selling mode again. So could this time be different?
They sell Bitcoin
Bitcoin It is experiencing the fastest investor loss in the last 2 years. Santiment thinks this is due to individual investors’ motivation to take profits. In 5 days, the number of wallets decreased by almost 250 thousand. The last time we saw something like this was in the summer of 2024. If Iran tensions rise and the macroeconomy pushes crypto inflation If it starts to overwhelm due to the current signal will prove to be a good sell alarm. In the opposite scenario, as in the summer of 2024 of the bull foundation can be laid.
“Capitalization is one of the key elements of the beginning of bull runs, and wallets can shrink both during a price decline (for fear of further losses) and during a price rise (with the expectation that prices will not rise further).
When the holders leave, the remaining supply is consolidated in the hands of those with the highest conviction. These are participants who have already decided that they will not sell at current prices; This means that the effective liquid supply available to the market decreases. As the number of actively circulating coins decreases and those remaining locked in patient hands increase, even modest increases in new demand can have a disproportionate impact on price. This is a reflection of underlying supply-demand dynamics, but operates at the owner level rather than the order book.
The June-July 2024 comparison in the chart is also worth examining. In that previous incident, more than 964 thousand wallets were allocated in five weeks. Rather than this being a sign of decline for crypto, it helped lay the foundation for the bull run that followed. “If history repeats itself, wallets currently allocated are transferring their positions to long-term holders, exactly the kind of people who fuel the next rally.”
Motivations for sales
Iranian The possibility of an agreement with is already priced in, and even if the agreement is officially announced, we may see a sell-the-news situation. If there is no agreement, then the market pricing the positive will reverse the charts again. It’s no surprise that profit taking is increasing, as downside appears to be the most likely direction in the short term.
For Bitcoin, one of the $83,000 and $78,500 levels is likely to be broken soon. Investors should remain cautious as sustained closes below $80,400 confirm that BTC is more likely to move towards support.
“BTC’s unrealized profit is reaching levels not seen since June 2025. Some profit taking may occur here.”
