7 Bitcoin (BTC) Facts Drop to Around $85,000, New Losses in the Global Crypto Spotlight

Jakarta, Pintu News – Bitcoin (BTC) has experienced a price drop and is back near the $85,000 range, a phenomenon that has been widely discussed in the cryptocurrency community as it shifts losses to a new group of buyers and changes the global market dynamics.

According to Decrypt’s report, this price movement reflects the normal phase at the end of a bull market cycle when short-term investors begin to realize losses. On-chain data shows a shift in ownership behavior, which is being monitored as a notable change in Bitcoin’s holder structure this year.

1. Bitcoin’s Drop to Around $85,000 in Market Focus

Decrypt’s report notes that Bitcoin briefly dropped to around $85,800, marking a continuation of the selling pressure that has been ongoing over the past few trading sessions. This drop attracted attention because it shifted the pressure of losses from long-term holders to new buyers who entered in recent months. This movement is being monitored as a sign of a vulnerable short-term trend as well as a reflection of the capital turnover phase in the crypto market.

Market analysts note that the sell-off that caused Bitcoin to drop involved a diverse group of investors, so it was not caused by one segment of the market alone. BTC’s price pressure is often monitored as an indicator of the health of the crypto market more broadly, specifically the volatility that increases when liquidity is depleted.

Also Read: 7 Reasons Ripple (XRP) Prediction to Break $100 is the Global Crypto Talk

2. Losses Increase among New Buyers

On-chain data from CryptoQuant shows that wallets that bought Bitcoin in the last 155 days are now recording unrealized losses reaching levels not seen since 2023. This means many new buyers have yet to break even as the price of BTC falls below their average purchase cost.

The profit/loss margin for buyers in the last three months stood at around -25%, according to on-chain analysis monitored by the crypto market. This figure has historically often been within the range when the market undergoes a correction phase or redistribution of wealth between holders.

3. BTC Ownership Shift from Old to New

The on-chain report shows a net shift in Bitcoin ownership, where the supply held by long-term holders decreased by around 1.78 million BTC since July 2025. Meanwhile, short-term holders increased their holdings by about 1.8 million BTC in the same period.

This phenomenon reflects the usual capital rotation in the final phase of a bull market, where old investors take profits while new buyers enter the market or accumulate at lower prices. This data is drawn from long-term and short-term holder trends which are often used as important metrics in market analysis.

4. The Role of Capitulation on Market Sentiment

Analysts from Indian crypto exchange BuyUCoin said that while losses among new buyers do not automatically trigger forced selling, the risk to its capitalization increases if BTC loses key cost-basis levels for the youngest buyers. This is often monitored by traders as a psychological barometer for potential further selling pressure.

Unrealized losses affect short-term investor sentiment as continued price pressure may prompt some holders to exit their positions, especially when markets are weak or liquidity is low.

5. Price Pressure is Not Uniform across Investor Groups

The data shows that the selling pressure is uneven across investor segments. Long-term holders who have held BTC for a long period of time are still in a position to profit despite the market drop. Meanwhile, short-term investors are experiencing more significant losses as the current price is below their acquisition price.

This points to more complex market dynamics, where ownership shifts and investor behavior play an important role in short- and medium-term price direction.

6. Impact on Market Volatility and Fragility

Due to ownership shifts and accumulation by short-term investors, the market exhibits higher price fragility in the short term. The shift from old to new holders is often associated with a phase of price redistribution and consolidation before the next potential upward move.

However, analysts consider that this does not necessarily mean that the market is entering a structural peak phase, but rather reflects a late-cycle feature of bull markets, which is often followed by a new phase of consolidation or accumulation.

7. BTC is still being monitored as a leading indicator of the crypto market

Bitcoin remains an important metric for overall cryptocurrency market dynamics due to its dominance and influence over other altcoins. Bitcoin’s price movements are often referenced by traders and investors to assess market risk and the direction of global sentiment.

The drop towards the $85,000 range followed by the sell-off pressure also impacted market liquidity and leveraged positions, creating a wave of technical action that affected the digital asset ecosystem at large.

Also Read: Bitcoin Stuck Below $94,000: When Will Price Recovery Happen?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

FAQ

What does Bitcoin’s drop to around $85,000 mean?

The drop to around $85,000 indicates selling pressure and a shift in losses to new buyers who purchased BTC in recent months, a dynamic monitored by crypto market analysis.

Who has the most to lose right now?

Short-term investors who bought BTC in the last 155 days suffered the biggest losses as the price fell below their average acquisition cost.

Why is Bitcoin ownership change important?

The switch from long-term to short-term holders indicates market capital rotation, which is often a normal phase in bull market cycles ahead of consolidation or trend changes.

Does this drop signal a bear market?

Although the decline indicates short-term price fragility, analysts consider this to be part of a market redistribution, not a definite signal of a structural bear market.

How do Bitcoin’s movements affect other crypto markets?

Due to Bitcoin’s dominance in the crypto market, its price drops often affect the liquidity and performance of other altcoins in the short term.

Reference

• Decrypt. Bitcoin’s Retreat to $85,000 Shifts Losses to New Entrants. Accessed December 16, 2025