Who Will Sell First? These Bitcoin Investors Are the Most Prone to Panic During a Recession

Bitcoin is currently hovering around the level of 115,000 dollars. Amidst the market fluctuations, a large group of BTC holders is behaving like impatient traders. Although they lack experience through many cycles and often capitulate, such trends can drive new strength into the market after a bearish phase. Behavior of BTC Holders A new analysis shows that Bitcoin holders aged 3-5 are behaving more like short-term participants than seasoned investors in the current cycle. This group, primarily consisting of those who bought during the 2021 cycle, is often classified as long-term holders. However, CryptoQuant notes that long-term investors are actually those who have gone through at least two market cycles. Instead of taking profits at recent highs, these holders tend to sell more aggressively during downturns. Analysts point out that such capitulation historically often coincides with market bottoms and frequently precedes strong recoveries in Bitcoin prices. These findings suggest an increasing divergence between mid-term holders and seasoned investors. This, in turn, raises questions about how this group may influence the next phase of the market. Meanwhile, CryptoQuant has recently recorded new activity among large Bitcoin investors, as the Exchange Whale Ratio of (Exchange Whale Ratio) increased to around 0.47-0.50. This metric tracks the ratio of BTC flowing into exchanges from the 10 largest transactions and is often viewed as a measure of whale participation. Previous reported cases clearly show a repeating pattern: a spike in whale ratios, stable prices, and ultimately a recovery. With the indicator currently testing previous levels associated with bottom formations, this foundation suggests that Bitcoin may be entering the early stages of a new bullish cycle. The behavior of those holding BTC aligns with the overall picture, indicating that this asset is still in a constructive market phase. "No Red Flags" In BTC Trajectory The Basic Bitcoin Index of Bitcoin Vector shows that after redistribution phases, BTC typically follows a three-step cycle: recovery, accumulation, and expansion. According to the analysis platform, the market is currently in the midst of the accumulation and expansion phase, which means that this asset has the potential for further price increases. Importantly, Glassnode co-founder Negentropic added that the on-chain fundamentals remain solid, with no "red flags" that could cause concern.