Bitcoin Sell-Off Shows Signs of Slowing as Whale Accumulation Grows

Bitcoin’s recent sell-off appears to be losing momentum, with on-chain data and market indicators suggesting that selling pressure may be easing, even as uncertainty continues to cloud the broader crypto market. After plunging to its lowest level since President Donald Trump’s second election victory, Bitcoin has stabilized and posted a modest recovery, prompting analysts to debate whether the worst of the drawdown is over or if the market remains in a prolonged bear phase.

The world’s largest cryptocurrency is currently trading near $70,000, down more than 44% from its October 6 all-time high of $126,080, according to CoinGecko data. This steep decline has pushed a majority of Bitcoin holders into unrealized losses, with only around 55% of the circulating supply still in profit, based on Glassnode metrics. Historically, such conditions have often coincided with accumulation phases, as investors holding losses are less inclined to sell at depressed prices.

On-chain indicators are reinforcing this narrative. Spot cumulative volume delta, a metric that measures the balance between aggressive buying and selling, remains deeply negative at approximately minus $327 million. Glassnode notes that similar levels in past cycles have tended to signal seller exhaustion rather than the start of a fresh distribution wave. At the same time, large investors are stepping in. Data from CryptoQuant shows that accumulation addresses purchased more than 54,000 BTC during last week’s downturn, highlighting continued whale interest in buying the dip.

Bitcoin has rebounded roughly 12% from its recent low near $62,800, a move that coincided with a sharp rise in the Coinbase Premium index, an indicator of U.S.-based investor demand. The premium’s surge suggests renewed buying interest from American traders, even as ETF inflows and broader institutional participation remain subdued.

Despite these encouraging signs, analysts caution that stabilization does not necessarily imply a trend reversal. Tight liquidity, ongoing policy uncertainty, and evolving regulatory frameworks continue to weigh on risk appetite. Many observers argue that the next meaningful leg higher for Bitcoin will depend on sustained institutional demand and an improvement in global macroeconomic conditions. For now, the data points to a market that may be finding its footing, but one that has yet to confirm a definitive recovery.