Bitcoin short-term holders (STHs) sold more than 22,000 BTC at a loss during a 7.6% pullback below $116,000 in August 2025, signaling renewed market caution that may prompt a short-term recalibration rather than a deeper collapse as selling intensity appears weaker than prior drawdowns.
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Key point 1 – Bitcoin STHs realized losses of 22,000+ BTC during the dip
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Key point 2 – The 7.6% price decline pushed SOPR below 1, indicating realized losses.
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Key point 3 – Selling intensity was softer than historical sell-offs, improving market absorption.
Bitcoin short-term holders sold 22,000+ BTC at a loss after a 7.6% dip below $116,000 — read the market impact and next steps for traders.
What happened when Bitcoin short-term holders sold 22,000 BTC at a loss?
Bitcoin short-term holders sold over 22,000 BTC during an August 2025 pullback, realizing losses as price dropped about 7.6% below $116,000. This concentrated selling by retail STHs created downward pressure but showed weaker intensity than past capitulations, suggesting a possible market recalibration rather than a large structural decline.
How did exchange flows and SOPR data signal market caution?
Exchange inflows exceeded typical intraday levels as STHs moved coins to exchanges. The net Realized Profit (SOPR) for STH cohorts fell below 1, confirming coins were sold at a loss. On-chain analytics recorded over 22,000 BTC in realized-loss transfers, with roughly 16,800 BTC of that figure sent to exchanges during the sharp retracement.
Analyst Axel Adler observed: “Bitcoin’s latest pullback revealed a notable shift in market dynamics among short-term holders (STH). During yesterday’s retracement from the $124,500 all-time high, around 16,800 BTC were sent to exchanges at a loss by STH—a figure significantly lower than in previous drawdowns.”
Why does weaker STH selling intensity matter for price stabilization?
Weaker selling intensity suggests exchanges and market makers are absorbing flows more smoothly. Short-term realized losses can flush overleveraged positions. That process may reduce panic in later phases and improve confidence among longer-term holders.
Historical on-chain patterns show that when STH selling is muted relative to prior capitulations, subsequent downside is often limited and the market moves into a digestion phase rather than a rapid collapse.
Did institutions or funding sources react to the sell-off?
No official institutional responses were reported publicly. Funding markets showed no immediate systemic stress. On-chain metrics and exchange balance changes point to organic retail-driven flows rather than coordinated institutional exits.
Tax and regulatory context: How should traders consider losses?
Realized crypto losses can be used to offset gains in many jurisdictions. In the United States, IRS guidance on virtual currency notes that losses reduce taxable gains and may be applied using strategies like tax loss harvesting. Traders should consult a qualified tax professional for personalized advice.
Frequently Asked Questions
How many Bitcoin were sold at a loss during the dip?
Short-term holders realized losses on more than 22,000 BTC as price retraced roughly 7.6% below $116,000 in August 2025, with a significant portion moved to exchanges.
What does SOPR below 1 indicate for short-term holders?
A SOPR below 1 indicates coins were sold at a loss. For STH cohorts, this signals realized losses and can reflect panic or stop-loss selling among retail participants.
Key Takeaways
- STH losses: Over 22,000 BTC sold at a loss during the recent pullback.
- Weaker intensity: Selling was less intense than prior drawdowns, aiding market absorption.
- Actionable insight: Monitor SOPR and exchange flows; consider tax loss harvesting and risk management.
Conclusion
Bitcoin short-term holders selling over 22,000 BTC at a loss after a 7.6% dip highlights renewed market caution but not necessarily systemic weakness. On-chain metrics point to a softer capitulation, which can support a market reset and price stabilization. Market participants should monitor SOPR and exchange flows and consider tax and risk strategies as the market digests this event. COINOTAG will continue to track developments and provide updates.
