Panic selling in full swing! Yesterday, BTC’s on-chain “Entity-Adjusted Realized Loss (EARL)”—which excludes internal transfers within the same entity—spiked to a whopping $1.3 billion. Even though that’s still much lower than the $1.8 billion EARL we saw during the sharp BTC dump to $85,000 on Nov 21, 2025, it’s still a massive number by any standard. In fact, there have only been a handful of days in the past decade where BTC’s daily EARL topped $1 billion. (Chart 1) Let’s be real, only a bear market can shake out this much weak-handed supply. But the good news is, panic flushes like this often give BTC some much-needed breathing room during downtrends. With less sell pressure, it’s easier for price to stabilize in the short term, setting the stage for a potential bounce. What’s more, BTC’s supply concentration has dropped from a high of 16% on Jan 28 to just 8.7% yesterday. That means the risk of massive price swings caused by clustered supply pockets is decreasing. (Chart 2) Of course, there are plenty of factors that can amplify volatility—liquidations from leveraged positions, short gamma in options, thin liquidity, you name it. Supply concentration is just one piece of the puzzle (just highlighting this factor here, not saying it’s the only one). Bottom line: Lower volatility and panic flushes both help set up a more stable price and increase the odds for a short-term bounce. But whether that bounce is strong or weak depends on demand and market momentum. ----------------------------------------------- For educational purposes only. Not financial advice!