Bitfinex Report: Bitcoin Enters Distribution-Dominated Phase, Unrealized Loss Funds Create New Selling Pressure on Bounce

On June 9, a Bitfinex analyst published a report noting that Bitcoin has shifted from the "accumulation phase" — which fueled its recent price rally — into a "distribution phase." Data highlights that after robust buying pressure between April and May, the spot volume delta has swung sharply negative, signaling early market entrants are steadily selling off during the current weak period, rather than holding or adding to their positions. The analyst added that short-term holders’ average cost basis has fallen below the market’s true average of $77,800, meaning a large portion of recent capital inflows are now sitting at unrealized losses — adding fresh selling pressure every time prices rebound. Bitfinex noted in the report: "Both on-chain and fund flow data confirm the current market is leaning toward a distribution-driven phase, rather than a classic panic bottom." The exchange stated that until spot demand makes a meaningful recovery, the broader market will stay in a defensive posture. This evaluation lines up with new metrics from on-chain analytics firm Glassnode. The firm’s data shows daily market realized losses have hit $1.35 billion, roughly $770 million of which stems from long-term holders triggering stop-loss orders. Additionally, Glassnode’s tracked realized profit-to-loss ratio has plummeted sharply from 3.16 on May 7 to 0.29 — nearly matching levels seen during the market’s February panic sell-off this year — signaling a fast-worsening market sentiment.