Driven by short-term holder capitulation during macro headwinds and spot ETF outflows, Bitcoin on-chain data now indicate a picture of market correction and bottoming phase. The short-term holder understood that price had dropped significantly toward the $69,000 mark, therefore closely matching the long-term holder cost basis and washing out speculative holdings in a pattern usually seen at cycle lows. The MVRV ratio has also fallen between 1.3 and 1.5, while almost 10 million BTC now rests in unrealised loss, therefore resetting the market from earlier exuberance levels.
Long-term holders and whales are aggressively absorbing supply notwithstanding price depreciation; exchange reserves keep decreasing as institutional custody and cold storage take over coins. Reflected in a Puell Multiple between 0.79 and 0.90 and a negative Miner Position Index, miner economics stay limited, indicating miners are holding rather than selling and therefore eliminating possible market selling pressure.
The general conclusion shows a classic supply transfer from short-term investors selling at a loss into the hands of price-insensitive long-term accumulators, therefore creating structural health beneath the surface even as macro risk-off mood lingers.
