Bitcoin’s Top Holders Begin Selling as Price Hits New Lows, Signaling Late Bear Market Stage
June 3, 2026 – CNBC — Bitcoin’s highest-conviction holders are starting to cash out amid the cryptocurrency’s ongoing price slump, a development that analysts say could mark the beginning of the end for the current bear market cycle. According to a recent note from Compass Point analyst Ed Engel, this behavior is typical in the late stages of bear markets and adds confidence to the assessment that Bitcoin (BTC) is nearing its bottom.
Major Long-Term Holders Turn Sellers
Long-term holders—investors who have kept their bitcoins for at least 155 days (around five months)—had remained mostly inactive between February and April. However, in the last several weeks, they shifted to selling, unloading approximately $2.4 billion worth of Bitcoin in just the past two days. Engel noted that this large-scale selling significantly impacts Bitcoin’s supply and demand dynamics.
He further pointed out that in the last 30 days, 26% of Bitcoin sold originated from investors who bought their coins at prices exceeding $90,000. This group, known as “top buyers,” had previously shown resilience throughout the bearish market but have now started to capitulate as BTC approaches new cycle lows.
“Top-buyer capitulation is a very common theme in late cycle bear markets,” Engel said. “This makes us more confident that BTC’s bear market is in its late stages.”
Bitcoin Price Struggles Amid Global Uncertainty
Bitcoin’s price has been unable to recover toward its record high above $126,000, first reached in October last year. Ongoing geopolitical tensions, particularly the conflict in Iran, have created uncertainty, which alongside contrasting movements in traditional markets, continues to weigh on the cryptocurrency. While the U.S. stock market has hit fresh all-time highs, Bitcoin remains subdued, raising questions about its established narratives. Investors debate whether Bitcoin still acts as “digital gold” to hedge against geopolitical instability or if it behaves like a volatile technology stock.
Continued Outflows from Bitcoin ETFs
Market data shows that Bitcoin exchange-traded funds (ETFs) have undergone net outflows for 12 consecutive days—marking the longest streak ever recorded. Assets under management in Bitcoin ETFs dropped from $107.8 billion on May 14 to $85 billion, indicating waning investor appetite.
Citi analyst Alex Saunders commented, “ETF flows are the primary driver of BTC price appreciation, explaining approximately 45% of weekly return variation, and serve as the best indicator of investor adoption and interest.”
With continued negative ETF flows and diminishing prospects for a U.S. market structure bill that could spur renewed investor enthusiasm, Saunders forecasts that sentiment toward Bitcoin will remain subdued in the near term. The divergence in performance between equities and Bitcoin is expected to persist without positive regulatory developments or fears that might push investors back toward cryptocurrencies as a hedge.
Recent Market Movements and Outlook
This week, Bitcoin retreated about 12% after a sharp sell-off on Monday triggered long position liquidations that accelerated downward pressure. The strategy-driven sale of a small number of coins—32 in total—was not seen as a significant factor by analysts but rather an accelerant of the broader market trend.
Despite the current weakness, experts believe that the capitulation of well-established buyers suggests the bear market is approaching its final phases. Historically, such shifts in holder behavior often precede market recoveries.
— Reporting by Tanaya Macheel and Michael Bloom for CNBC
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