Bitcoin (BTC) sellers took control during the European trading session on Tuesday as the BTC/USD pair slipped below the $70,000 mark for the first time since April.
Analysts said that Bitcoin has entered another distribution phase due to high selling pressure and investors realizing losses.
Key takeaways:
- Bitcoin sees renewed distribution as short-term holders sell at a loss and exchange inflows continue to rise.
- Crypto market sentiment fell back into “extreme fear,” while spot Bitcoin ETFs saw 11 straight days of outflows.
- Whale activity surged to its highest level since April, signaling possible accumulation despite broader market weakness.
Bitcoin holders are capitulating
The Short-Term Holder SOPR (STH-SOPR) metric, a measure of whether short-term holders are selling at a profit or a loss, dropped below 1 as fading US-Iran ceasefire hopes pushed Bitcoin price below $70,000.
Related: Bitcoin bulls consider fresh positions after BTC price drops under $71K
Currently at 0.98, it shows renewed short-term loss realization, suggesting the primary sellers are recent investors reacting to uncertainty rather than long-term structural distribution.
Bitcoin: Short-term holder SOPR. Source: CryptoQuant
The chart above shows a similar occurrence in early February after US President Donald Trump announced 15% blanket tariffs despite the Supreme Court ruling them illegal. Uncertainty intensified as the clash between Federal law and presidential authority sent BTC price to $65,000.
The same behaviour is seen among the six-12 month holder group that has “activated potential selling positions,” CryptoQuant analyst Rei Researcher said in a QuickTake note on Tuesday.
The volume of BTC deposited to exchanges by the six-12month holder cohort (yellow columns) has increased continuously since May, reaching levels last seen in October 2025 when Bitcoin reached its all-time high above $126,000. BTC price has been in an extended downtrend since then.
Large supply pressure from this group, appearing heavily at this time, is a “huge barrier to the recovery momentum,” the analyst said, adding:
“This exchange inflow volume needs to be well absorbed; otherwise, $BTC will face deeper correction waves.”
Bitcoin exchange SOPR age bands. Source: CryptoQuant
Additionally, Bitcoin’s realized profit/loss ratio, a measure of the balance between realized gains and losses for coins spent onchain, has dropped to -0.87 from -0.4 last week, representing a 125% increase, according to data from Glassnode.
“This reflects a period of heightened selling pressure where market participants are increasingly willing to divest their holdings at a loss,” the onchain data provider said in its latest Market Pulse report, adding:
“Bitcoin is in a distribution phase with deteriorating breadth.”
Bitcoin realized profit/loss ratio. Source: Glassnode
Crypto sentiment drops to “extreme fear” again
The Crypto Fear and Greed Index hit 23 on Tuesday, returning to the “extreme fear” reading that characterized the market between early February and late April.
The index gauges market sentiment using volatility, momentum, trading volume, and social signals. A score below 25 signals “extreme fear” or risk aversion, while 26–49 reflects cautious positioning or “fear,” with higher readings indicating improving investor confidence or “greed.”
Crypto Fear and Greed Index. Source: Alternative.me
The index’s move below 25 follows the latest sell-off in the crypto market, which has seen the global crypto market capitalization drop 7% over the last week, while Bitcoin dropped 9.3% over the same period.
Spot Bitcoin exchange-traded funds (ETFs) have also recorded a string of outflows over the past 11 trading days, according to Farside Investors data. The biggest outflow over the 11 days was $733.4 million on May 27.
Spot Bitcoin ETF flows chart. Source: Farside Investors
Meanwhile, other analysts spotted other signs of optimism for the Bitcoin bulls.
As Bitcoin dipped below $70,000, the “network saw most transactions valued at $100,000 or more since April 22,” onchain analytics platform Santiment said in a Tuesday X post, adding:
“This is historically a strong sign of whale accumulation.”
BTC $100K+ transactions. Source: Santiment
