Bitcoin’s correction has plunged the market into panic. Short-term holders are selling at a loss, losses are piling up, and exchanges are flooded with fearful inflows.
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Yet while retail capitulates, miners are quietly turning the tide. Such structural divergence has historically appeared near cyclical turning points.
Short-Term Holders Capitulate
According to new data from CryptoQuant, Bitcoin is undergoing one of the deepest short-term capitulation phases of the cycle.
The STH-SOPR metric sits at 0.97, showing that short-term holders are selling at a loss, while the STH-MVRV metric is far below 1.0, confirming that the most recent buyers are now underwater.
Analysts call this a “capitulation band,” a rare pattern that emerges only during panic-driven selling. Historically, these extreme unrealized losses tend to burn out quickly as weaker holders finish selling.
According to CryptoQuant’s report, these signs are typical of the late stages of a correction, not the start of a new downtrend.
Miners Pivot From Selling to Accumulating
While short-term holders are capitulating, miners are behaving differently. Despite Bitcoin dropping 21% from its October peak, miners’ flow shows a shift away from distribution and toward measured accumulation.
According to data from CryptoQuant, they briefly sold off as BTC prices dropped below $110,000, but have now returned to steady accumulation.
Over the past month, miners sold BTC on only 11 days and accumulated on 19, with total inflows and outflows nearly balancing out.
Even the largest single day of selling of almost 1,900 BTC on November 6 occurred when prices were still high enough for miners to lock in profits. Since then, selling has become more measured, suggesting the stress phase may have passed.
However, the most telling development is that miners have returned to net accumulation over the past week, adding roughly 777 BTC despite prices sitting more than 12% lower than a month ago.
The 30-day miner position has moved back into positive territory at roughly 419 BTC. Historically, such a shift signals the exhaustion of miner-driven sell pressure.
As CryptoQuant notes, miners now appear to have completed their adjustments, potentially marking an early sign of stabilization in Bitcoin’s broader supply dynamics.
Why This Matters
The clash between panicked traders and steady miners could mark Bitcoin’s final phase of this correction.
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People Also Ask:
It happens when traders who recently bought Bitcoin start selling at a loss, often out of panic rather than strategy. This typically spikes during market corrections.
Miners control a significant Bitcoin supply. When they sell aggressively, it can increase downward pressure. Conversely, when they accumulate, it can stabilize the market and signal potential bottoms.
Not necessarily. While these trends suggest the late stage of a correction, price volatility can persist. It’s a signal of potential stabilization, not a guaranteed rebound.
