Bitcoin News Today: Bitcoin's Broad Distribution Mode Sparks Short-Side Bets and Retail Access Woes

All bitcoin wallet cohorts, spanning from those holding over 10,000 BTC to those with less than 1 BTC, are currently in a distribution mode as market momentum slows following a recent peak in bitcoin prices above $124,000. This shift is reflected in the Accumulation Trend Score (ATS), a key metric that assesses the strength of accumulation or distribution activity across different wallet sizes. The ATS has dropped to 0.26, indicating broad-based distribution across the board. This score remains below the 0.5 threshold for several days, a sign of profit-taking and potential short-term corrections in the market [1]. Historically, such a pattern has been observed in previous price corrections during the month of August, which is often characterized by lower trading volume and reduced market enthusiasm [1].

Meanwhile, the number of wallet addresses holding at least one whole Bitcoin remains relatively small, with only approximately 1 million such addresses globally. These addresses have primarily accumulated their holdings before 2018, a time when Bitcoin was significantly less expensive. Institutional adoption has accelerated this concentration of Bitcoin, with firms like MicroStrategy and MetaPlanet aggressively acquiring large quantities of BTC. As a result, the remaining supply of Bitcoin available for retail investors has dwindled. According to a 2024 study by CCN, less than 4 million BTC are available after accounting for lost coins, exchange holdings, and institutional accumulations, further limiting retail access [2].

The United States’ Bitcoin holdings have now surpassed $24 billion, largely through seizures related to criminal activity, including high-profile cases such as the Silk Road. U.S. Treasury Secretary Scott Bessent recently stated that the government does not plan to purchase additional Bitcoin through direct market buys, although he did leave the door open for non-budgetary means of expanding the reserve, such as auctions and seizures. The government also holds a diverse portfolio of digital assets, including Ethereum, BNB, and stablecoins, which collectively bring its digital holdings to approximately $24.27 billion [4].

Bitcoin’s recent distribution pattern has also caught the attention of traders looking for short-side opportunities in the cryptocurrency market. A confirmed "bull trap" in Bitcoin was observed when it undercut breakout support on increased selling volume, indicating a potential distribution phase. This divergence in price action between Bitcoin and major equity indices like the Nasdaq highlights the market’s mixed signals. Traders with a short bias are being advised to look for entry points during Bitcoin rallies, while those with a long bias are focusing on breakout setups in other indices such as the Russell 2000 [5].

The broader market environment has been influenced by global macroeconomic factors, with Bitcoin climbing to record highs on expectations of U.S. interest rate cuts and a more favorable regulatory landscape. The cryptocurrency’s ascent was further supported by institutional inflows and growing investor confidence in a digital asset class. In equities, European indices showed signs of a rally following positive economic surprises in the UK and a dovish outlook on U.S. monetary policy [6]. These developments highlight the interplay between traditional markets and the rapidly evolving cryptocurrency ecosystem, particularly as institutional involvement continues to shape Bitcoin's price and distribution patterns.

Source:

[1] All BTC Wallet Cohorts Now in Distribution Mode (https://www.coindesk.com/markets/2025/08/19/all-bitcoin-wallet-cohorts-now-in-distribution-mode-glassnode-data)

[2] You'll Probably Never Own 1 Bitcoin (And Why Satoshi ... (https://www.coingecko.com/learn/why-youll-never-own-whole-bitcoin-by-design)

[4] United States' Bitcoin Holdings Top $24 Billion After Ruling ... (https://www.mitrade.com/insights/news/live-news/article-3-1048517-20250818)

[5] Bitcoin Distribution Pattern Offers Short-Side Opportunities ... (https://www.investing.com/analysis/bitcoin-distribution-pattern-offers-shortside-opportunities-on-rallies-200665363)

[6] Bitcoin hits all-time high while European indices look bid | IG ... (https://www.ig.com/en-ch/news-and-trade-ideas/bitcoin-hits-all-time-high-while-european-indices-look-bid-250814)