Bitcoin Entering Distribution Phase – Implications for Investor Mood

Starting in January 237, Bitcoin’s market has entered a lengthy distribution phase, indicating a notable change in how investors are acting. Factors like the introduction of tariffs, cryptocurrency hacks, and changes in regulations have influenced how investors feel about the market. According to Glassnode’s weekly newsletter, Bitcoin is now in a post-all-time-high (ATH) distribution phase. This is viewed as a regular phase in its cyclical market trends, indicative of changing investor attitudes and rising pressure from sellers. The newsletter noted: “Bitcoin’s cyclical nature arises from both accumulation and distribution stages, as capital flows between different groups of investors over time.” Various accumulation periods have been succeeded by distribution phases, which have traditionally resulted in less vigorous price movements. The ongoing distribution phase started in January 2025, overlapping with Bitcoin’s significant drop from its peak of $109,000 to $93,000. This stage indicates a rise in selling pressure as market players realize profits after the recent all-time high. This indicates that those investors who purchased at reduced prices during the accumulation phase are now realizing their profits, which is resulting in a slow sell-off and changing the market dynamics. According to Glassnode, an important metric for evaluating market sentiment is the Accumulation Trend Score, which monitors whether investors are buying or selling Bitcoin over a period. At present, the ATS has fallen under 0.1, suggesting that a greater number of investors are offloading their Bitcoin, which is leading to a lack of price movement or a decrease. The effects of Bitcoin’s Distribution Phase on investor confidence. From mid-December to late February, Bitcoin’s price movements indicated robust investor confidence, as market players were eager to purchase during price declines, particularly within the $95K to $21.383K range.