Cryptocurrency market analyst Crazzyblockk from research firm CryptoQuant provided an update indicating that a typical market shakeout is currently occurring, with on-chain data showing that the newest Bitcoin investors are exiting at a loss, while more experienced holders are absorbing the available supply. This activity is not interpreted as a sign of systemic weakness but rather as a natural reduction of speculative leverage, which serves to reinforce the market’s overall foundation.
According to Crazzyblockk, the losses are primarily concentrated among the market’s most recent participants. Investors who have held Bitcoin for less than one month are experiencing an average unrealized loss of approximately -3.5 percent, prompting them to sell. This trend is evidenced by a notable reduction in the supply held by this group over the past several weeks, representing a classic capitulation driven by fear.
In contrast, the broader Short-Term Holder (STH) segment remains largely resilient and profitable, showing an aggregate unrealized gain of around +4.5 percent. This indicates that while the newest investors are exiting the market, those who have held Bitcoin for one to six months are maintaining their positions and remaining in positive territory. The decrease in total STH supply reflects the exit of inexperienced holders rather than a widespread market panic.
He additionally provided a market outlook, describing the current activity as a bullish structural development. According to his assessment, the market is eliminating its least committed participants, transferring their Bitcoin to holders with a lower cost basis and stronger conviction. By clearing this excess supply from sellers driven by fear, the overall price structure is strengthened. While this shakeout may be challenging for those who purchased near recent highs, it represents the type of adjustment that establishes a solid support foundation for future upward movements.
Weak Hands Fold: New Bitcoin Investors Capitulate, Fueling a Healthy Market Shakeout
— CryptoQuant.com (@cryptoquant_com) August 26, 2025
“The market is purging its weakest hands, transferring their BTC to holders with a lower cost basis and higher conviction.” – By @Crazzyblockk pic.twitter.com/l5jZVpOOGJ
Bitcoin Falls Below $110,000 Amid Profit-Taking And Market Uncertainty Following Jerome Powell’s Rate Cut Signals
At the time of writing, Bitcoin is trading at $110,115.10, reflecting a decline of more than 1.35 percent over the past 24 hours. According to data from CoinMarketCap, the cryptocurrency reached a high of $112,829 and a low of $109,152 during this period.
Bitcoin dropped below the $110,000 level for the first time in over six weeks as traders continued to realize profits from the previous market rally amid broader market uncertainty. This represents Bitcoin’s lowest value since July 9th, according to price records.
The recent decline follows a brief rally last Friday, which occurred after Federal Reserve Chair Jerome Powell suggested a potential interest rate cut at Jackson Hole, generating anticipation ahead of the September FOMC meeting.
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