TLDR
Less than 2% of Bitcoin’s supply exists between $70,000 and $80,000, creating a thin liquidity “air pocket”
Bitcoin has dipped below $75,000 twice last week after reaching an all-time high of $109,000 in January
About 25% of Bitcoin’s supply is currently held at a loss, mainly by short-term holders
Stablecoin active addresses have spiked recently, crossing above 300,000
Transaction volume for stablecoins has reached $72 billion, potentially indicating investors preparing to buy the dip
Bitcoin is experiencing increased volatility after entering what analysts call an “air pocket” between $70,000 and $80,000. This price range contains less than 2% of Bitcoin’s total supply, creating a zone of thin liquidity that could lead to rapid price movements in either direction.
The world’s largest cryptocurrency has fallen below $75,000 twice in the past week, continuing its descent from the all-time high of $109,000 reached on January 20. According to data from Glassnode, this current price range represents an area Bitcoin quickly passed through following former President Donald Trump’s election victory in November.
After the election, Bitcoin climbed from around $70,000 to over $100,000 without consolidating at key levels along the way. History shows that when Bitcoin rallies without establishing support at important price points, it often returns to test these levels later.
Understanding the Air Pocket
The low supply concentration in the $70,000-$80,000 range can be observed through Bitcoin’s unspent transaction output (UTXO) data. UTXO represents the amount of Bitcoin received but not yet spent in transactions.
The UTXO Realized Price Distribution (URPD) shows the prices at which existing Bitcoin UTXOs last moved. This metric helps visualize where most holders acquired their Bitcoin.
With less than 2% of the total supply in the current range, price action could remain unstable. Bitcoin will likely need to build more trading history within this range to establish a sustainable trend in either direction.
Around 25% of Bitcoin’s supply is currently held at a loss. These positions belong primarily to short-term holders who purchased within the last 155 days.
Stablecoin Activity Surging
At the same time, on-chain data reveals a spike in stablecoin activity that might have implications for Bitcoin’s next price move. Active addresses for stablecoins, particularly USDT and USDC, have increased sharply in recent days.
According to market intelligence platform IntoTheBlock, stablecoin active addresses have crossed above 300,000. This metric tracks the total number of addresses involved in daily blockchain transactions, including both senders and receivers.
The total value of stablecoins in circulation reached new all-time highs this quarter, with over $220 billion in circulation at the moment. pic.twitter.com/ifRb7qyT4M
— IntoTheBlock (@intotheblock) April 6, 2025
Alongside this increase in active addresses, transaction volume for stablecoins has reached $72 billion. The market capitalization of stablecoins has also set a new record, suggesting fresh capital inflows to the sector.
This uptick in stablecoin activity could be interpreted in two ways. It might represent investors preparing to buy cryptocurrencies at lower prices, using stablecoins as dry powder waiting on the sidelines. Alternatively, it could indicate investors moving from volatile cryptocurrencies into stablecoins to avoid further market drops.
Bitcoin currently trades around $77,300, having retraced some of its recent recovery. The cryptocurrency market continues to watch for signs of whether the current consolidation will lead to further drops or a renewal of the uptrend.
The lack of price history in the current range makes predictions challenging. Traders are closely monitoring whether Bitcoin can establish support within this air pocket or if volatility will push prices out of this range quickly.
With one-quarter of Bitcoin holders currently underwater on their investments, market sentiment remains mixed. The behavior of these short-term holders could play a crucial role in determining Bitcoin’s next major move.
