**Short-term Bitcoin Holders React to Market Correction with Significant Sell-Off**
In light of the recent market correction, many short-term Bitcoin holders have opted to cut their losses. Following a sharp decline, Bitcoin fell from its peak of $96,500 on Monday, February 24, to a three-month low of $86,050 by Tuesday, February 25. This prompted a wave of selling among short-term holders, who collectively realized losses amounting to $1.7 billion—the highest since August 2024, when losses exceeded $2.4 billion. This information comes from CryptoQuant data shared by Head of Research Julio Moreno on Wednesday, February 26.
Prominent crypto analyst Miles Deutscher commented on the situation, suggesting that this sell-off signals another instance of “capitulation” in Bitcoin’s downward trend. In a previous post on X, Deutscher noted that the crypto Fear and Greed Index had dropped into the fear zone, reaching its lowest point since October 2024. He remarked, “People are finally getting nervous again. Believe it or not, that’s exactly what we need to eventually form a bottom.”
However, not everyone is convinced that the worst is over. Geoffrey Kendrick, Standard Chartered’s Global Head of Digital Asset Research, cautioned that “the big capitulation” has yet to occur. In a note to investors on Tuesday, February 26, he predicted further outflows from Bitcoin ETFs (exchange-traded funds) following a record exit of nearly $1 billion on Monday. Kendrick stated, “I calculate that net ETF purchases since the US election are now running a loss of around $1.3 billion. The average purchase price since then, based on daily BTC closing prices, is $97,000. These types of losses rarely end well, and I still think the big capitulation is yet to come,” urging investors to exercise patience before considering buying the dip.
As the market continues to fluctuate, the potential for further capitulation raises questions about Bitcoin’s price trajectory. Glassnode has indicated that the next significant support level for the asset lies between $71,000 and $72,000. As of now, Bitcoin is trading close to its recent low, hovering around $86,200. The unfolding situation remains dynamic, and it will be interesting to see how these developments impact the market in the coming days.
