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The broader cryptocurrency market has shifted into a heightened bearish phase, causing Bitcoin to drop from its current all-time high of $124,000 to the $117,000 threshold. While bearish pressure is building, indicators such as Bitcoin’s supply dynamics are providing insights about the current state of the market and investors’ sentiment.

What Bitcoin Supply Data Says About The Market

Bitcoin’s price has fallen sharply after reaching a new all-time high on Thursday, which has sparked speculation about the current state of the market. Amidst the growing speculations, Boris, a crypto trader and on-chain expert, has provided a detailed analysis of the current state of BTC’s market, using the supply dynamics.

Bitcoin supply patterns are currently painting a vivid picture of investor behavior, accumulation tendencies, and possible price direction, as well as the market’s health. Boris’ examination of the supply dynamics hinges on the behavior of long-term holders and short-term holders.

As Bitcoin rose to its all-time high, supply dynamics revealed a stark divergence between these different groups of investors. Presently, long-term BTC holders are steadily offloading their holdings while short-term BTC holders are persistently accumulating the asset at a rapid rate.

This divergence in sentiment between the groups indicates that the market is currently in a post-all-time high stress test. A post-all-time high stress test reflects a phase where the boundaries of market resiliency and investor belief are being tested.

With short-term holders holding strong and long-term traders responding aggressively to price fluctuations, the present phase is determining whether BTC can maintain its value and momentum following the recent high. 

Data shows that long-term holders’ supply saw a drop from 15.50 million BTC to 15.28 million BTC, which is an indication of profit-taking. Meanwhile, the supply of short-term holders rose from 4.38 million BTC to 4.61 million BTC, suggesting that the cohort is capitalizing on recent rallies.

According to the on-chain expert, this change demonstrates that STHs followed the trend and increased risk, while LTHs responded to the rally with sales. After a short period, Bitcoin’s price quickly fell back from about $124,000, putting late buyers through a stress test.

Furthermore, Boris noted that the final wave exhibits a classic market pattern where experienced holders limit their exposure and short-term holders accumulate close to the top. Such a development typically signals a loss of momentum.

Short-Term BTC Holders Are Showing Strength

A recent research from Glassnode, a leading on-chain data analytics firm, has also revealed an underlying strength among short-term BTC holders. The platform’s research is solely focused on the Bitcoin Short-Term Holder SOPR Indicator.

Specifically, this key metric tracks whether new investors are selling at a profit or loss. As BTC’s price surges, the metric temporarily dipped below neutral levels, but quickly recovered and rose above neutral. This move, according to Glassnode, shows limited realized losses and indicates that new Bitcoin investors are prepared to protect their cost basis, which is currently close to $112,000.

Featured image from Pixabay, chart from Tradingview.com

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Ethereum’s Ether (eth)the second largest cryptocurrency is spot exchange trading funds, looking at the profits of renewed investors (ETF) The US records one of the strongest momentum in its one of the most in its one-year history.

iShares Ethereum Trust in BlackRock on Thursday (Eta) Data compiled by Farsise Investors booked the largest daily inflow ever, pushing its managed total assets to $5.6 billion, up over $300 million.

This is part of a broader revival of ether-supported investment products.

Nine US-listed ETFSs collected a net inflow of $703 million this week, according to Crypto data provider SosoValue. Data for Friday is still pending, but it has already marked the third strongest weekly haul since the product launched last July.

Investor demand has recently been featured, despite Ether prices falling behind Bitcoin this year, according to a new report from asset manager FineQia.

AUM for exchange products backed by ETH (ETPS) In the first half of 2025, we grew 61% faster than the market capitalization of our underlying assets. This is a sign of a stable inflow into the product, the report says.

The report notes that demand for ETP began to recover by late April and continues until June, surpassing ETH price rise.

The capital flood helped fuel the ETH rebound to $3,000. This is the best price for over 4 months.

Read more: The Ethereum Foundation sells 10,000 ETH and sells it to Sharplink.