Bitcoin Price Flashes Bear Market Signal as ARK Invest Offloads $9M in BTC ETFs

Bitcoin price is flashing bear market signals that may fuel a downtrend as institutions, including ARK Invest, reduce their exposure to BTC.
By muthoni
Bitcoin Price Flashes Bear Market Signal as ARK Invest Offloads $9M in BTC ETFs

Highlights

  • Bitcoin price flashed a bear market signal after falling below the short-term holder realized price.
  • Institutions such as ARK Invest are reducing their BTC exposure after the asset manager offloaded nearly $9M BTC ETF
  • Long-term holders are accumulating Bitcoin after buying 20,000 BTC

Bitcoin (BTC) recently saw its biggest single-day loss since August 2024, which pushed it below the short-term holder (STH) realized price. The recent downtrend also appeared to have spooked institutional investors after Cathie Wood’s ARK Invest offloaded $9M in spot BTC ETFs. As fear grips traders, has Bitcoin entered bear market territory, or is a price recovery looming? 

Bitcoin price today trades at $88,246 with a daily high of $89,508. 

Advertisement
Advertisement

Bitcoin Price Shows Bear Market Signs as Instutions Offload BTC  

Bitcoin price is under bearish stress as institutions, including ARK Invest, offload BTC. The asset manager sold nearly $9M from its own ARK 21Shares Bitcoin ETF (ARKB) before buying $8.8M of Coinbase stock after the price dropped by 6%. The sale coincided with a record $1.1 billion spot Bitcoin ETF outflows.  

Bitcoin Price Flashes Bear Market Signal as ARK Invest Offloads $9M in BTC ETFs
Bitcoin ETF Netflows

The weak demand from institutions coincides with a downtrend in US stock markets after the S&P 500 flashed a sell signal. Financial markets have been reeling amid inflation fears and President Donald Trump’s tariff policies. 

Advertisement
Advertisement

Is Bitcoin in a Bear Market?

The recent drop in Bitcoin price caused jitters over whether the asset may be entering a bear market. Several factors suggest that while there is room for recovery, the bearish sentiment is strong.

Bitcoin has dropped below the short-term holder realized price of $91,540 indicating that these holders are now sitting in losses. This may cause potential panic selling and increased downward pressure leading to a bear market. 

The realized price of short-term holders is now a key resistance level as this cohort will likely start selling if Bitcoin price registers an uptrend past $90,000. 

Bitcoin Price Flashes Bear Market Signal as ARK Invest Offloads $9M in BTC ETFs
Bitcoin STH Realized Price

Bitcoin holders also saw their biggest single-day loss since August 2024. Realized losses from traders selling during the downtrend hit a 2025 high of $1.7 billion. Such intense losses often cause negative market sentiment that may fuel a price drop. 

Bitcoin Price Flashes Bear Market Signal as ARK Invest Offloads $9M in BTC ETFs
Bitcoin Realized Loss

Additionally, the Bitcoin Fear and Greed Index has plunged to 21, its lowest level in three months. This shows a state of extreme fear and a strong bearish sentiment that may weigh on the price. 

Advertisement
Advertisement

Long-term Bitcoin Holders Accumulate Bitcoin

Despite the institutional selling and short-term holder panic, long-term Bitcoin holders are buying Bitcoin. These traders recently bought 20,000 BTC, causing the Long Term Holder Net Position Change to flip positive for the first time in nearly five months. 

Bitcoin Price Flashes Bear Market Signal as ARK Invest Offloads $9M in BTC ETFs
Bitcoin Long-Term Holder Net Position Change

Long-term holders tend to buy when prices are low are sell during rallies. However, while this accumulation shows a bullish Bitcoin price forecast, it still needs a surge in institutional and retail demand for a sustained uptrend. 

Bitcoin Price Analysis – What’s Next for BTC? 

Bitcoin price fell below a multi-timeframe support level of $92,534, which pushed short-term holders into losses. According to analyst Patric H, BTC needs to recover this level to trigger renewed bullish momentum and resume its uptrend past $100K to $116,000. 

However, if Bitcoin turns this support level into strong resistance, and falls below the 200-day EMA, it could drop to around $81,500. 

Bitcoin Price Flashes Bear Market Signal as ARK Invest Offloads $9M in BTC ETFs
BTC/USD: 1-day Chart

Bitcoin price still has room for a leg up past $90,000 if institutions and retail traders start accumulating the dip. However, selling pressure needs to ease for a sustained price recovery. 

Advertisement

Frequently Asked Questions (FAQs)

1. Has Bitcoin price flashed a bear market signal?

Bitcoin price dropped below the short-term holder realized price yesterday causing panic selling as trader sentiment dropped to “extreme fear.” However, BTC remains above its 200-day EMA, making a price recovery possible.

2. Why are institutions selling Bitcoin?

Institutions could be selling Bitcoin due to concerns around the impact of President Trump’s tariff policies.

3. What’s the next key price level to watch in BTC?

Bitcoin’s key support level stands at around $92K. If it recovers and turns this resistance into support again, it could resume its uptrend toward $100,000.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience decoding blockchain trends, price movements, and market dynamics. She holds a Bachelor’s Degree in Commerce (Finance) from Kenyatta University, blending a solid academic foundation with a sharp eye for technical analysis and a deep understanding of on-chain data. Her work delivers clear, data-driven insights that empower investors to navigate the fast-evolving digital asset space with confidence. When she’s not analyzing the markets, Mary enjoys reading and travelling.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.