"Bitcoin's Short-Term Panic: Whales Accumulate Amidst Market Turmoil"

Bitcoin's recent market moves have been characterized by a pattern of short-term holders selling into weakness, while long-term investors and institutions quietly absorb their supply. This trend has been evident in the latest correction, which was triggered by President Trump's tariff announcement and fueled by a higher-than-expected U.S. inflation report.

According to Outset PR founder and crypto market expert Mike Ermolaev, the sell-off was primarily driven by short-term holders who had held their coins for just one week to one month. These investors locked in $479.1 million in realized losses during the sell-off to $93,000, marking one of the largest capitulation events of the current bull cycle. However, when measured in BTC terms, this magnitude of losses is relatively moderate and typical for a bull market correction.

Historically, similar patterns have been observed in the market. For instance, the Yen-Carry Unwind event in August 2023 saw a staggering one-day realized loss of 24.8K BTC. In contrast, the recent sell-off amounted to 5.1K BTC, indicating a more moderate level of capitulation.

The current correction appears to be caused by a FUD-driven sell-off of short-term holders rather than any structural macroeconomic shifts. The uncertainty created by President Trump's tariff threats and the persistent strength of the U.S. dollar have contributed to a marginally stressed liquidity environment. Additionally, a higher-than-expected U.S. inflation report led to sharp declines across the crypto and stock markets.

Despite the short-term market fluctuations, institutional demand for Bitcoin remains strong. Bitcoin ETFs saw outflows exceeding $200 million a day last week, followed by a strong rebound in buy-side activity, making up over 8% of global spot volume. This suggests that institutions are continuing to accumulate Bitcoin despite the recent correction.

On-chain data from CryptoQuant and Bitcoin Magazine Pro confirms this trend, revealing that retail Bitcoin holdings have declined while larger investors have expanded their holdings. Additionally, the number of addresses holding more than 100 BTC has increased, indicating that whales are taking advantage of the fear-driven selling to strengthen their positions.

As Mike Ermolaev highlights, the recent market turbulence has once again underscored a well-documented trend in Bitcoin's history—short-term holders panic-selling while whales accumulate. This