Bitcoin (BTC) markets are once again engulfed in volatility, with prices sliding and short-term profits evaporating. Since June 10, the number of holders selling at a loss has surged nearly 29%, intensifying fears of a broader sell-off. Yet beneath this surface-level panic, savvy conviction buyers are quietly repositioning for the future.
Short-Term Holders Bear the Brunt
The current market environment has been particularly unforgiving for short-term holders (STHs). Historically, both short- and long-term holders (LTHs) shared in market rallies, but this cycle paints a different picture. STH profits have collapsed to just 12%, while LTH profit supply has climbed to 75%, highlighting a stark divergence between weak and strong hands.
☠️🚨 THE GREAT SACRIFICE
— Rafaela Romano (@hi_disruptivas) June 23, 2025
Never before seen in Bitcoin’s history 👇
Cycle after cycle, long-term holders (LTHs) have consistently outperformed short-term holders (STHs).
But historically, both groups still saw significant profits.
When the supply of LTHs in profit reached 97%,… pic.twitter.com/tHxbjqZG2A
As more than 95,000 BTC holders now sit on realized losses—up from 74,000 in early June—many are exiting the market under pressure, reinforcing the ongoing shakeout.
Conviction Buyers Step In Amid the Chaos
Despite the bleak short-term outlook, an undercurrent of strategic accumulation is gaining momentum. As weaker hands capitulate, a growing number of conviction buyers are seizing the opportunity to lower their cost basis. These investors view the downturn not as a collapse, but as a discounted entry point for future gains.
This simultaneous rise in capitulation and conviction underscores a key dynamic of Bitcoin market cycles: opportunity often emerges from adversity.
Shakeouts Build Stronger Market Foundations
What the market is witnessing is a textbook shakeout—an essential process that weeds out speculative, short-term participants while fortifying the base with stronger hands. Historically, such phases have laid the groundwork for more sustainable rallies.
Also Read: Why Are Bitcoin Miners Selling? Could This Trigger a BTC Price Correction?
While current price action may appear painful, it is helping set the stage for renewed growth. In Bitcoin’s cyclical history, patience has consistently been rewarded—and this time looks no different.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
