Bitcoin (BTC) came under renewed selling pressure on Thursday as it slid below the $105,000 mark. The latest market downturn has reignited comparisons to earlier cycles.
But on-chain data suggests the 2025 landscape is structurally stronger than in 2020 or 2021.
Same Shock, New Bitcoin
Unlike past corrections, when exchange reserves surged as investors rushed to sell, CryptoQuant said that today’s balances remain near decade lows. This reflected a leaner supply on trading venues. The scarcity of readily available Bitcoin dampens the potential for prolonged selloffs and creates conditions for quicker stabilization.
Meanwhile, long-term holders appear largely unfazed by recent volatility. The Long-Term Holder Spent Output Profit Ratio (LTH-SOPR) has stayed close to neutral, in sharp contrast with the deep sub-1 readings of previous capitulations that signaled mass losses and panic exits.
Instead of dumping positions, these holders are selectively realizing profits. History shows Bitcoin’s pattern of recovery. The March 2020 crash, for one, cleared excess leverage before whales began buying again. In May 2021, as well, large wallets repeated the cycle – selling high, then buying low. After the August 2023 US debt downgrade, another quick rebound followed as investors resumed.
Each cycle demonstrated the market’s growing ability to absorb shocks and recover. The present setup “does not equate to structural weakness.” Unless a surge in exchange inflows triggers broad selling pressure, the analysis stated that Bitcoin’s current retracement looks less like a capitulation and more like a consolidation.
BTC Still Leaving Exchanges
Swissblock also observed that Bitcoin’s downturn reflects consolidation rather than capitulation. The analytics platform said that after weeks of heavy exchange outflows driven by long-term holders’ accumulation, some selling has resumed, but with significantly milder intensity. Despite the shift, BTC continues to flow out of exchanges, even as the pace is slower, indicating that investors remain largely confident and are not rushing to liquidate holdings.
“The true impact of the weekend’s deleverage will surface as participants reposition. So far, on-chain behavior supports short-term bullish structural consolidation, not panic or forced selling.”
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