Wall Street is selling Bitcoin but the old holders are now buying it back

An important story is making waves across the blockchain ecosystem. Glassnode's latest Week Onchain report shows that roughly 10. 83 million BTC are now in the red, against 9. 22 million still in profit.

Loss-making supply now accounts for roughly 54% of the measured total, compared with 46% still in profit, meaning underwater coins exceed profitable coins by about 1. Infographic showing 54% of Bitcoin's circulating supply (10. 83 million BTC) is held at a loss, exceeding the 46% held in profit by roughly 1.

Market Dynamics

Glassnode describes this as one of the sharpest deteriorations in investor profitability since the current bull market began, a threshold with real psychological weight. Crossing it before has coincided with genuine capitulation among newer buyers, the kind of stress that shapes a structural drawdown. Underwater holders are the ones most prone to selling into panic or exiting near breakeven once the price recovers, which keeps a layer of resistance above the market.

Yet those same coins can migrate to higher-conviction buyers if patient capital is willing to absorb them, and Glassnode's data shows exactly that kind of buyer has begun to show up. The seller profile is already changing underneath that stress, as Glassnode says long-term holders have started rebuilding positions, a reversal from an extended stretch of distribution, with net position change back in positive territory. The pace stays modest, well short of the buying waves seen in prior accumulation cycles, but the direction has turned.

The first sign of a bottom often shows up here, in experienced holders deciding a drawdown is worth buying, well before price itself confirms anything. Glassnode's Accumulation Trend Score climbed across multiple cohorts this week, with the strongest readings among wallets holding less than 1 BTC and entities holding 100 to 1,000 BTC. Wallets in the 1,000-to-10,000 BTC range also turned net buyers.

Market Impact

Bitcoin's quiet bid is spreading across the entire ownership ladder, from the smallest wallets to mid-sized entities. US-traded spot Bitcoin ETFs remain in sustained net outflow territory, and that selling pressure has persisted even as on-chain conviction builds in the opposite direction. The ETF story explains why the price stays weak, while the on-chain story explains who is taking the other side.

ETF investors Sustained net outflows Regulated wrappers are still de-risking Explains why price remains weak Long-term holders Net position change back in positive territory Experienced holders are rebuilding exposure Suggests supply is moving to patient hands Small wallets Strong accumulation among sub-1 BTC wallets Retail-sized holders are buying the drawdown The bid is not only institutional or whale-driven Mid-sized entities Strong buying among 100–1,000 BTC entities Larger on-chain holders are also absorbing supply Accumulation is broadening across cohorts Large wallets 1,000–10,000 BTC wallets turned net buyers Bigger holders are no longer only distributing Confirms the seller profile is changing Spot order books Coinbase and Binance shifting toward bids Buyers are placing liquidity below spot A base can form even while price looks weak Coinbase and Binance both show books shifting toward the bid, with buyers adding liquidity below spot. That bid looks patient, which is why the price can still look weak even as a base starts to form underneath it. Hyperliquid traders hold a long bias at the highest level Glassnode has tracked, using leveraged exposure to bet on a bounce before spot conviction is fully confirmed.

The cash market is trying to build a floor, while the derivatives market is trying to get there first. Options traders are already paying up for protection: the 14-day put-to-call volume ratio climbed above 1. 0, its highest reading in a year.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.