Bitcoin Price Falls to $85,800 Amid Shifts in Holder Dynamics and Institutional Demand
The price of Bitcoin fell to about $85,800, marking a roughly 4% drop within 24 hours, according to CoinGecko.
In recent months, short-term holders have been actively buying dips, while new whales—those wallets that bought Bitcoin in the last three months—are facing losses with a -25% profit/loss margin.
Since July 2025, the supply of Bitcoin held by long-term holders declined by approximately 1.78 million BTC to 13.68 million BTC, whereas short-term holder supply rose by about 1.8 million BTC to 6.28 million BTC. The 30-day net position changes reveal short-term holders adding 768,000 BTC and long-term holders reducing their holdings by 755,000 BTC.
This movement from long-term to short-term holders is characterized as a late-cycle wealth transfer rather than a structural market top.
Demand in the current market is broader and more institutional, with ETFs and corporate balance sheets absorbing significant supply.
However, the risk of capitulation increases if prices break key cost-basis levels near those associated with ETF or institutional entry zones. Macro shocks could trigger defensive selling, as noted by Shivam Thakral of BuyUCoin.
Despite the near-term price fragility, this shift is viewed as laying the groundwork for consolidation before the next upward leg in Bitcoin's price.
