Bitcoin is showing signs of exhaustion as long-term holders take profits and selling accelerates, with Glassnode warning of possible deeper market stress if spot demand doesn’t recover.
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Posted October 23, 2025 at 9:44 am EST.
Blockchain analytics firm Glassnode described bitcoin’s current market conditions as being “hedged in fear,” with bitcoin trading below key cost basis levels, which signals demand exhaustion and fading momentum.
The firm noted that long-term holders have been selling into strength, with a significant increase in selling activity — over 22,000 BTC sold per day since July.
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These dynamics mirror past patterns seen during corrections and periods of market stress, often preceding a mid-term bearish phase. But this time, Glassnode suggests a recovering market will depend on restoring spot demand and mitigating volatility-driven flows.
“If Bitcoin fails to recover above the ~113.1k, a deeper contraction could push a larger share of supply into loss, amplifying stress among recent buyers and potentially setting the stage for broader capitulation across the market,” said Glassnode.
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