Bitcoin Supply Shock Imminent? Whale Holdings in Dormancy, Retail Selling Intensifies Price Volatility

March 12 News: The latest on-chain data and market analysis indicate that Bitcoin may be approaching a supply shock phase. As short-term holders face financial pressures and sell Bitcoin, long-term investors and institutional whales remain dormant, showing that the market is undergoing structural changes.

CryptoQuant data shows that Bitcoin’s current trading price is around $69,446. About 71.41% of on-chain UTXOs are still in profit, while approximately 28.58% of Bitcoin holdings are at a loss, mainly concentrated among short-term traders. Analysis points out that retail investors’ selling behavior during market volatility has intensified short-term price pressure, while the stable holdings of long-term holders serve as a potential market support.

The Spent Output Profit Ratio (SOPR-STH) for short-term holders is close to 0.97, indicating that this group is selling Bitcoin at a loss. Meanwhile, whales and early investors have hardly moved Bitcoin on-chain, suggesting that institutional capital remains optimistic about Bitcoin’s long-term prospects. Analysts believe that this contrast between selling and dormancy may set the stage for a potential supply shock in the market.

In the current environment, price volatility may increase, but supply tightening and confidence among long-term investors could support Bitcoin. Experts recommend investors monitor on-chain indicators and whale activity to assess market liquidity and potential risks of upward movement or pullbacks.

Overall, Bitcoin is in a critical adjustment phase. The interplay between short-term selling pressure and long-term holding confidence will have a profound impact on future price trends. If a supply shock officially forms, prices could enter a new volatile stage, attracting high-net-worth investors and institutional capital.