Bitcoin Whales Absorb Dual Sell-Off as Capitulation Peaks

The most consequential shift in this move did not occur at the lows, but in how sell pressure was redistributed once Bitcoin dipped into the low $60,000 range.

On-chain flows show that what appeared to be disorderly capitulation was met with unusually coordinated absorption beneath the surface.

A report shared by CryptoQuant outlines a rare “double capitulation” event, where both short-term holders and miners exited aggressively at the same time. Rather than extending the downside, that supply was structurally redirected into larger hands, reshaping near-term risk dynamics.

Synchronized Sell Pressure Clears Weak Hands

The sell-side phase accelerated on February 5 as Bitcoin briefly traded in the low $60K zone, triggering a systemic clean-out across fragile cohorts. Miners were among the most active sellers, with the Miners’ Position Index surging to 2.95, a level historically associated with forced liquidations to maintain operational liquidity during sharp drawdowns.

At the same time, short-term holders found themselves deeply underwater. The STH Realized Price stood at $92,009, meaning most recent buyers were holding unrealized losses as price traded far below their cost basis. This stress translated directly into realized selling, confirmed by the STH SOPR printing 0.977, signaling that coins were being spent at a loss rather than repositioned.

This convergence of miner stress and short-term holder capitulation created an unusually dense wave of market supply, typically the type of event that precedes extended downside if left unabsorbed.

Whale Accumulation Rewrites the Flow Structure

Instead of cascading lower, that supply was steadily absorbed by larger entities operating off-exchange. Wallets holding between 100 and 1,000 BTC emerged as the dominant buyers during the dip, accounting for 77% of total inflow dominance, according to the report.

Long-term holders reinforced this absorption. Data tracking the seven-day change in LTH Realized Cap shows more than $5.68 billion added on February 5, with the metric remaining positive at $1.88 billion by February 10. This behavior points to conviction buying rather than short-term positioning, particularly as accumulation occurred near the $69,000 level.

The result was the formation of downward price rigidity, where persistent sell pressure failed to generate sustained follow-through, suggesting that available supply was being structurally removed from circulation rather than recycled back onto exchanges.

Miner Stress Lingers Despite Cooling Panic

While the immediate capitulation phase has faded, underlying stress has not fully resolved. The Miners’ Position Index has since collapsed to -1.31, indicating that the acute liquidation phase has ended. However, miner profitability remains constrained.

Hashprice rebounded from its February 5 low to 0.035 by February 9, but it continues to trade well below its 365-day moving average of 0.048. This gap implies that miners are still operating under compressed margins, increasing sensitivity to periods of price stagnation or renewed volatility.

At the same time, the short-term holder cost basis near $91,855 remains a significant overhead zone. Until price meaningfully reclaims that level, latent sell pressure from underwater holders cannot be ruled out, even in the presence of strong whale absorption.

Structural Takeaway

The data suggests that the market successfully absorbed a rare dual capitulation event without cascading lower, largely due to coordinated accumulation by medium-to-large whales and long-term holders. That absorption increases the probability of a developing supply shock, but it does not eliminate risk.

Miner revenue remains fragile, and a large portion of recent buyers are still positioned above current price. For now, the structure favors stabilization over continuation, with confirmation dependent on renewed demand rather than further supply compression alone.

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