BTC ownership is being redistributed
Bitcoin is undergoing a notable reshaping of its ownership structure, according to a MarsBit report. The main pattern highlighted is straightforward: Wall Street-related selling is meeting demand from older wallets and smaller holders on-chain. Continued ETF outflows have contributed to broad unrealized losses across a meaningful portion of market holdings, reinforcing distribution pressure from institutional capital.
Institutional selling is being met by patient on-chain buyers
The report does not describe the market as one-sided. Instead, it points to simultaneous absorption from long-term holders and smaller wallets, both of which have turned into net buyers. In practical terms, that suggests BTC supply is rotating away from institutionally driven ownership and toward capital with a longer holding horizon. This is less a clean reversal than a transfer of coins from weaker or more tactical hands into more patient balance sheets.
Bottom formation depends on slower selling and sustained accumulation
MarsBit notes that the market is showing some early characteristics often associated with a bottoming process. However, confirmation has not yet arrived. Two conditions remain central: first, ETF-related selling pressure needs to slow; second, accumulation by long-term holders and smaller wallets must continue. If sell pressure eases while on-chain absorption remains intact, the current redistribution of BTC ownership could become more durable. Source: https://news.marsbit.co/20260703195408872208.html