Since the 10th of June, the number of $BTC holders selling at a loss has surged nearly 29%, climbing from 74,000 to over 95,000. It’s clear that weak hands are tapping out.

But what adds nuance is that conviction buyers have also risen; a subtle indicator that not everyone is giving in to fear.

Instead of running, some investors are seizing the downturn to lower their cost basis. The market may look bruised, but strategic repositioning is underway.

Capitulation and conviction are moving together, and only one side will come out on top.

Stronger hands will inherit the rally

What we’re witnessing is a classic shakeout. Bitcoin cycles often cleanse the market of weak hands before paving the way for a stronger, more resilient base.

As short-term sellers capitulate, long-term holders and conviction buyers are stepping in, making way for a more stable accumulation phase.

This, while painful in the short run, is essential for sustainable growth. Bitcoin has always rewarded patience, and this phase appears no different.