​If you’re looking at the charts right now, the mood seems heavy—but I believe there’s a much more nuanced story playing out beneath the surface. As we head toward 2026, we are seeing a massive divergence in the market that most people are misinterpreting as pure bearishness.

​The "Squeeze" is Real

​On the surface, it’s a "risk-off" environment. Since the October crash, Bitcoin hasn’t been able to reclaim its previous highs. The most telling stat for me is the supply in profit: it has plummeted from a staggering 98% before the sell-off to just 63% today.

​When you see the Net Unrealized Profit/Loss (NUPL) sitting deep in the red, it looks like a classic capitulation. But here is where it gets interesting: this isn't a panic; it’s a structural shakeout.

​The China Factor: Forced to Sell

​The real pressure isn't coming from retail fear—it’s coming from hardware being pulled off the wall. China has tightened the screws again, specifically in Xinjiang, shutting down roughly 1.3 GW of mining capacity.

​Here’s the breakdown of that impact:

​400,000 mining rigs have gone dark.

​The global hashrate dropped by 8% (falling from 1.12 billion TH/s to 1.07 billion TH/s) in just one week.

​With China still commanding about 14% of the global hashpower, miners are being forced to liquidate BTC just to cover the costs of relocating or shutting down.

​We can see this reflected in the data: Asian exchanges are showing consistent net spot selling, and even some Long-Term Holders (LTHs) are trimming their positions to manage the volatility.

​The Great Divergence: East vs. West

​While Asia is selling out of necessity, the U.S. is buying with conviction. Just recently, U.S. Spot BTC ETFs recorded a massive $457 million inflow in a single day. We are witnessing a historic hand-off. Bitcoin is moving from forced sellers (miners and Asian desks) into the hands of institutional "strong hands" in the West.

​Looking Toward 2026

​I don't see this as a fear-driven capitulation. To me, this looks like a "Healthy Reset." Yes, miner margins are squeezed, and the lower hashrate might cap our momentum in the short term. However, the fact that institutions are absorbing hundreds of millions of dollars in sell pressure tells me the floor is much firmer than it looks.

​As we move into 2026, the "forced selling" from China will eventually dry up. When that happens, the supply shock meeting this institutional demand could create a very powerful move upward.#BTC #bitcoin #CryptoMarketMoves #Write2Earn