Bitcoin Capitulation: Over 40,000 BTC Dumped by Short-Term Holders

• Over 40,000 BTC dumped at a loss by short-term holders signals market capitulation.
• STH MVRV ratio below 0.82 suggests a potential recovery phase ahead.
• Historical data indicates long-term holders may drive a price rebound.

The cryptocurrency market is witnessing a dramatic capitulation event, with over 40,000 BTC sent to exchanges at a loss by short-term holders (STH), according to a recent post by Maartunn on X.

This surge in loss-selling mirrors a similar spike observed on July 25, 2025, signaling potential market distress. On-chain data from CryptoQuant reveals that this behavior often precedes accumulation phases, where long-term holders step in to buy the dip. Historical trends, such as the absorption of 500,000 BTC by long-term holders during stress periods in April 2025, support the notion that this could be a buying opportunity for savvy investors.

The capitulation is highlighted by the STH MVRV ratio dropping below 0.82, a threshold Glassnode identifies as a precursor to market recovery. This metric, which compares market value to realized value, indicates that STH are unloading positions at a loss, potentially clearing out weak hands. The timing aligns with broader financial shifts, including the U.S. Federal Reserve’s rate cut to 4.75%-5% on September 18, 2024, which may have pressured short-term traders amid global economic uncertainty. While no peer-reviewed study directly ties monetary policy to BTC capitulation, the correlation suggests external market forces at play.

For investors, this event could mark a critical juncture. Past cycles, such as the 2022 bear market, saw similar STH sell-offs followed by significant price rebounds. Analysts on X, including Crypto Seth, have echoed this sentiment, suggesting it’s an “excellent time to buy that dip.” However, caution is advised as volatility remains high, and macroeconomic factors like potential tariffs under the current U.S. administration could further influence market dynamics.

As the crypto community watches closely, this capitulation could pave the way for a bullish reversal, provided long-term holders continue to absorb the supply.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.