Recent data from CryptoQuant indicates a significant reduction in panic selling within the Bitcoin market. Short-term holder (STH) inflows to the Binance exchange have plummeted to a record low of approximately 25,000 BTC over the past seven days. This marks a dramatic decline from the peak seen in February, when Bitcoin's price broke below $60,000, triggering STHs to send nearly 100,000 BTC to Binance in a single week.
The sustained drop in these inflows, now divided by four from their February peak, is interpreted as a strong signal of market stabilization. Short-term holders are considered the most reactive segment of investors to abrupt price changes. Their moderation suggests that the bulk of forced selling may have already occurred, allowing Bitcoin to enter a consolidation phase following a correction that saw it fall more than 50% below its last all-time high.
At the time of reporting, Bitcoin was trading around $66,643, still below the psychologically important $70,000 level cited by analysts like Citigroup. The bank recently revised its 12-month Bitcoin price target down to $112,000 from $143,000, citing stalled U.S. crypto legislation and a narrowing window for regulatory catalysts. Citi also warned that Bitcoin could drop to $58,000 in a recessionary scenario.
Despite the cautious macro backdrop—including persistent geopolitical tensions and risk-off sentiment—there are signs of underlying institutional demand. CoinShares reported digital asset funds saw $230 million in weekly inflows, with Bitcoin accounting for $219 million of that total. This suggests interest remains, albeit with heightened selectivity.
The overall picture points to a market transitioning from an emotional selloff to a phase of range-testing, with reduced selling pressure from short-term holders providing a foundation for potential stability. However, with policy uncertainty unresolved and Bitcoin still trading below key resistance, the path to recovery is expected to be a gradual grind rather than an immediate breakout.
