Bitcoin Drops 6.5% as Old Wallets Sell Off, But Companies Keep Buying (2025 Update)

• Why Did Bitcoin Suddenly Drop 6.5%?
• Who’s Still Buying During the Dip?
• Is This Changing Bitcoin’s Fundamental Value?
• What’s With the Trump Media Crypto Move?
• How Does QE Play Into This?
• FAQ Section

Bitcoin’s price took a 6.5% hit this week as long-dormant wallets cashed out, but corporate buyers are still stacking sats like there’s no tomorrow. Glassnode data shows over 70% of the sell pressure came from just three age groups: 1-2 year holders (34,500 BTC), 6-12 month holders (16,600 BTC), and 3-5 year holders (16,000 BTC). Meanwhile, public companies are gobbling up BTC at a record pace – some are even trading at discounts to their bitcoin holdings. JPMorgan analysts say this institutional demand could fundamentally change Bitcoin’s valuation framework. Oh, and Trump Media just jumped into crypto too. Buckle up!

Why Did Bitcoin Suddenly Drop 6.5%?

The recent price dip wasn’t random – it was a classic case of “old hands” taking profits. According to Glassnode’s August 2025 data, coins that had been sitting idle for 6 months to 5 years suddenly started moving. The 14-day SMA for long-term holder spending spiked dramatically. Imagine finding a forgotten wallet from 2023 and seeing it’s now worth 3x more – WOULD you sell? Exactly. By Monday though, the market had absorbed this supply shock, with BTC bouncing back above $109,000.

Who’s Still Buying During the Dip?

While retail investors panicked, corporate treasuries were licking their chops. The Michael Saylor playbook (convert cash reserves to BTC) has gone mainstream, with 180+ companies now following MicroStrategy’s lead. Capriole Investments’ August 22 report shows 25% of these firms trade below the value of their Bitcoin stash. Think about that – you could buy discounted Bitcoin just by purchasing certain stocks! Public companies alone scooped up two-thirds of all institutional BTC purchases in July.

Is This Changing Bitcoin’s Fundamental Value?

JPMorgan’s Nikolaos Panigirtzoglou thinks so. In a recent analysis, he noted: “These corporate buyers create a valuation floor we’ve never seen before.” The shrinking volatility (Bitcoin’s 30-day volatility now rivals gold’s) makes BTC increasingly attractive to traditional portfolios. We’re witnessing a paradigm shift where Bitcoin isn’t just “digital gold” – it’s becoming treasury reserve asset 2.0.

What’s With the Trump Media Crypto Move?

In a plot twist nobody saw coming, Trump Media Group partnered with Crypto.com to launch a CRO-focused strategy. Since the August 26 announcement, Cronos (CRO) has surged to a $9B market cap. Love him or hate him, Trump knows how to move markets – and now he’s moving crypto markets.

How Does QE Play Into This?

With the Fed’s balance sheet ballooning past $9 trillion again, corporate treasurers are desperate for inflation hedges. The same quantitative easing that saved markets in 2008 and 2020 is now driving Bitcoin adoption. As one BTCC analyst quipped: “When the printer goes brrr, smart money goes BTC.”

FAQ Section

How much Bitcoin was sold by long-term holders?

Three groups accounted for 67,100 BTC in sales: 1-2 year holders (34,500 BTC), 6-12 month holders (16,600 BTC), and 3-5 year holders (16,000 BTC).

Which companies are buying Bitcoin?

Over 180 public companies now hold BTC, led by MicroStrategy. About 25% trade below the value of their Bitcoin reserves.

What’s Bitcoin’s current volatility?

As of August 2025, Bitcoin’s 30-day volatility has decreased significantly, now comparable to gold’s historical volatility.