Bitcoin Sentiment Worsens as New Investors Decline and Panic Selling Rises

Bitcoin's market sentiment is turning bearish as fresh investment slows, with fewer new addresses being created and short-term holders selling at a loss.

Analyst Ali Martinez noted that the monthly average of new Bitcoin addresses has fallen below the annual average, signaling a decline in adoption.

This drop in network activity raises concerns about Bitcoin’s ability to sustain growth in the near term.

Technical analyst Darkfost highlighted that short-term BTC holders recently experienced significant losses, with many selling their holdings at a loss, potentially due to panic sparked by the Bybit hack.

Historically, such capitulation events have often marked local market bottoms.

Meanwhile, smaller investors—wallets holding less than 1 BTC—are accumulating at a slower pace. Macro researcher Axel Adler Jr. pointed out that retail investors, who usually increase their holdings during bullish trends, are now hesitating.

This suggests that larger investors are currently driving Bitcoin’s price movements, while retail sentiment remains weak.