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.

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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.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.