Data from blockchain analytics firm Glassnode reveals aggressive accumulation of Bitcoin during its recent sharp downturn. More than 400,000 BTC have been purchased within the $60,000 to $70,000 price band. This has increased the total supply held in this range from roughly 997,000 BTC on January 1 to approximately 1.43 million BTC, a surge of about 43%.
This dense cluster now represents over 8% of the non-exchange circulating supply, indicating significant investor cost basis in this zone. The analysis uses Glassnode’s Unspent Transaction Output Realized Price Distribution (URPD) metric, which groups Bitcoin supply by the price at which each coin last moved on-chain, adjusted to exclude exchange balances and internal transfers.
The accumulation comes amid a severe market correction. Bitcoin's price has fallen from around $88,000 at the start of the year to a recent intraday low of $62,694, part of a broader ~50% retracement from its October all-time high of $126,000. The $70,000 to $80,000 zone, previously described as an "air pocket" with little historical trading activity, was traversed rapidly, with BTC falling from $80,000 to $70,000 in just five days from January 31 to February 5.
Market sentiment has turned deeply negative. The Crypto Fear & Greed Index has plunged to 11/100, signaling "extreme fear," while 24-hour liquidations have mounted to $342.76 million. Analysts warn of further downside potential. Samer Hasn, a senior market analyst at XS.com, suggests Bitcoin could fall to the $53,000-$55,000 range due to persistent selling pressure. Matt Howells-Barby of Kraken identified the $60,000 level as a critical support zone for bulls.
Supporting the accumulation thesis, digital asset investment products have seen five consecutive weeks of outflows, totaling $4 billion, with spot Bitcoin ETFs alone contributing over $200 million in outflows on a single Monday. Despite the bleak outlook, some prominent figures see opportunity. MicroStrategy Executive Chairman Michael Saylor, whose company sits on $9 billion in unrealized losses from its BTC holdings, declared, "Bitcoin is on sale."
