Bitcoin Supply Shifts Amidst Shifting Market Dynamics

Recent volatility in Bitcoin’s price has sparked a unique redistribution of the cryptocurrency’s supply. On-chain data shows that a particular price band, around $83,000 to $86,000, absorbed over 5.8% of the entire circulating BTC supply during the recent downturn. This is a rare event and suggests a shift from short-term traders to long-term investors. Many earlier buyers at high prices exited during the price reversal, while longer-term holders stepped in, effectively buying low and resetting the market’s cost basis for a significant portion of Bitcoin’s supply.