Bitcoin Correction Unfolds Differently from Prior Peaks
Bitcoin's current correction is unfolding differently from prior market peaks, with far less profit-taking pressure. According to Glassnode's sell-side risk ratio, which compares realized profits and losses against total value, the current reading stands at 7 basis points per day, down from 35 in July 2025.
Long-term holders, defined as addresses holding coins for at least five months, accounted for only 47% of realized profits in early September, down from 88% at the August peak. This marks a significant shift in who is doing the selling.
The average gain for long-term holders has shrunk to about 72%, versus 350% in December 2024, generating far less incentive to exit. Mid-sized wallets have been accumulating rather than distributing, absorbing coins at elevated prices and coinciding with a surge in institutional demand through U.S. spot Bitcoin ETFs.
The ETF complex took in $999 million on September 21, the largest single-day inflow since early July, and roughly $2.978 billion over seven sessions. This institutional bid represents a structural difference from prior downturns and could swing flows in either direction with Federal Reserve policy shifts.