Bitcoin's weakening sell pressure hints at possible market bottom — CryptoQuant

Bitcoin (BTC) may be approaching the final stages of its current correction as selling pressure eases, according to a CryptoQuant report on Thursday.

The report noted that the current phase of realized losses differs significantly from the first major sell-off earlier this year. The data suggests that many panic sellers may have already exited the market.

CryptoQuant's 30-day Net Realized Profit/Loss metric reveals that the latest wave of realized losses has reached roughly 234,000 BTC. The figure stands well below the roughly 400,000 BTC recorded during the initial leg of the decline earlier in the year, despite Bitcoin trading around similar price levels.

"It suggests that the marginal seller is becoming weaker in size. A large part of the panic-driven supply may have already exited during the first decline," CryptoQuant analyst MorenoDV wrote.

Onchain data points to fading capitulation pressure

The report also highlighted the Buy/Sell Pressure Delta, which revealed that selling remains elevated. However, it is yet to reach the extreme levels typically associated with major capitulation events.

"Historically, this kind of structure often appears when the market has already flushed a large portion of weak hands, but still needs one final test to force out the remaining holders trapped in deep unrealized losses," the report said.

The analyst also cautioned that broader market conditions have yet to confirm a cycle bottom. CryptoQuant’s one-year Net Realized Profit/Loss metric remains in negative territory but is still below loss levels that accompanied previous Bitcoin bear market lows.

"This does not mean Bitcoin must collapse. It means the market is likely in a late-stage stress phase: weak hands have been reduced, realized loss intensity is fading, but the final confirmation is still missing," the report added.

CryptoQuant noted that continued declines in realized losses, alongside price stabilization, would be a strong sign that selling pressure is easing. On the other hand, if BTC falls to new lows and realized losses rise again, it could signal a final phase of capitulation before a potential recovery.

Franklin Templeton amends filing to launch Bitcoin-focused dividend reinvestment ETFs

Despite the cautious onchain outlook, institutional firms continue to advance investment products.

Franklin Templeton filed a post-effective amendment with the US Securities and Exchange Commission (SEC) late Thursday to launch two exchange-traded funds (ETFs) designed to combine exposure to US equities with systematic Bitcoin accumulation.

The proposed Franklin US Equity Bitcoin DRIP Index ETF and Franklin US Innovation Bitcoin DRIP Index ETF would invest about 95% of their portfolios in US stocks and approximately 5% in Bitcoin-related investments at launch.

Rather than paying cash dividends to investors, the funds would automatically reinvest dividends into Bitcoin exposure through a "Dividend Reinvestment Plan" (DRIP) strategy. The method gradually increases their crypto allocation over time while maintaining Bitcoin as a secondary holding in the portfolio.

BTC is trading at $63,010 at the time of writing.