"The latest decline in Bitcoin shows a different dynamic."

Recently, the sharp decline in Bitcoin (BTC) continues to attract the attention of investors. However, important data indicates that this decline is structurally different from the past FTX and Terra Luna crises.

According to a report from the analytics firm Glassnode, the current market correction contains a significant distinction when compared to the collapses of FTX and Luna. Data shows that over 90% of Bitcoin's supply is still in profit. This situation reveals that the recent sell-offs have largely been driven by investors who bought at peak prices. Particularly, considering that only 35% of Bitcoin's supply was in profit during the collapse of FTX, the current situation is quite different.

Glassnode’s analysis explains how challenging the situation was during previous major crashes, particularly during the FTX (2022) and Terra Luna (2021) crises. During those times, the market had entered a general capitulation phase and many investors were forced to sell at a loss. However, as we evaluate the current situation, it is noted that the pressure on Bitcoin has mostly been shaped by the liquidation of leveraged positions and the panic of short-term investors.

In this context, it appears that structurally strong investors continue to remain in profit. According to Glassnode, the current turmoil was largely caused by excessive risk accumulation in the futures market. This situation is seen as a sign that Bitcoin continues to be a reliable asset for long-term investors.

Glassnode’s assessment emphasizes that this wave of selling should be interpreted as a leverage-based correction, rather than capitulation, as it occurred in an environment where a significant majority of the supply was profitable. For investors, it is important to closely monitor market trends in light of these developments.