NewsBTC
Dec 20, 2025
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Bitcoin Dips Driven by Market Structure, Not Selling Pressure

Recent Bitcoin market volatility is attributed to structural issues rather than widespread selling pressure. On-chain metrics indicate stability among holders, with price weakness linked to stablecoin-denominated shorts.

Structural Weakness Explained

  • Bitcoin dips mainly stem from stablecoin leverage entering the system.
  • Market makers maintain neutrality by selling spot BTC, not due to bearish sentiment.
  • The U.S. exports dollars, creating leverage and synthetic pressure, which affects global markets without asset dumping.
  • Current market rebalancing reflects a weak currency environment, leading to enhanced volatility.

New Phase in Bitcoin Supply Dynamics

  • $300 billion of previously dormant BTC re-entered circulation in 2025 due to long-term holder sales and large OTC transactions.
  • High distribution levels over the last 30 days, with selling pressure outweighing demand.
  • ETF flows have turned negative, and retail participation has decreased.
  • K33 suggests this distribution phase may end by early 2026, potentially leading to renewed accumulation as supply stabilizes.

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