Bitcoin could be heading towards a supply shortage as small investors sell their coins and large holders stay inactive, according to market data from CryptoQuant.
About 71% of Bitcoin is currently held at a profit, while around 28% of coins are at a loss. This shows that short-term holders are feeling pressure and selling, while long-term investors are staying put.
Data from CryptoQuant shows that short-term holders are selling at a loss, with a Spent Output Profit Ratio near 0.97. Analysts say this indicates retail investors are exiting positions during market swings.
At the same time, “whales” or large investors have mostly kept their coins dormant. Analysts see this as a sign that long-term holders remain confident in Bitcoin’s future.
Bitcoin exchange reserves have also fallen significantly in 2026. The total has dropped by about 204,000 BTC, from 2.99 million to 2.786 million BTC. This suggests many investors are moving coins to cold storage or long-term wallets.
The combination of fewer coins on exchanges and inactive whales could create a supply shock. This happens when there are not enough coins for sale, which can drive prices up if demand rises.
CryptoQuant analysts say the market may be going through “fear exhaustion,” as retail selling slows down. If selling pressure eases and long-term holders continue to hold, Bitcoin prices could see a strong upward move.
Currently, Bitcoin trades around $69,446, with market watchers keeping a close eye on supply trends and investor behavior.
