The recent volatility in the Bitcoin market pullback is widely interpreted as a wave of selling pressure, but the underlying data tells a different story. On-chain statistics show little evidence of broad distribution of investors, suggesting that these dips are not caused by investors exiting their positions. Instead, the price weakness appears to stem from market structure issues.
Why structural weakness is often temporary
These Bitcoin dips are not due to selling pressure; they come from shorts denominated in stablecoin. GlydeGG’s co-founder, Sweep, revealed on
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Their mandate is to remain neutral, because neutrality requires balance. They achieve this by selling spot BTC, not because they are bearishbut because neutrality requires it. As a result, the price falls without fear, panic and without real ridicule.
The United States does not need to dump assets to exert influence global markets; it exports dollars. Those dollars become leverage, while leverage creates synthetic pressure, which in turn forces hedging, and hedging hits the spot markets; that’s the cycle. This is why recent sell-off numbers feel empty, because retail has already left.
The market within a system is currently rebalancing price against a weakening currency, and all markets are now denominated in a currency that is losing purchasing power. That is why volatility increases even if belief does not change. This is not a bear market; it makes the Liquidity Providers (LPs), that’s how big players buy BTC cheaply without ever owning it.
How Bitcoin supply dynamics are entering a new phase
An ambassador and partner of Wolfswapdotapp, Crypto Miners, has done just that pointed out that the dynamics of the Bitcoin supply are changing rapidly. Nearly $300 billion worth of previously dormant BTC came back into circulation in 2025, according to K33Research. This supply release was driven by long-term holder selling, large OTC trades, and ETF-related absorption, representing one of the largest supply unlocks in BTC. history.
Related reading: Bitcoin’s Make-or-Break Phase Begins: Weekly Support Holds, Momentum Fades
Data in the chain from CryptoQuant has shown that long-term holder distribution over the past 30 days has reached the highest level in more than five years. At the same time, selling pressure is currently greater than demand as ETF flows turn negative and retail participation has weakened.
Despite the short-term vulnerability, K33 noted that this distribution phase may be approaching exhaustion. Early stock selling is expected to dissipate in early 2026, potentially paving the way for renewed accumulation as institutional rebalancing stabilizes supply. For the time being, the markets remain sensitive, but structurally this appears to be a late cycle delivery redistribution instead of panic selling.
Featured image from Pixabay, chart from Tradingview.com