Bitcoin Sees Broad-Based Buying After Sharp $60K Capitulation

When bitcoin crashed to $60,000 on February 5th, something unexpected happened: instead of more panic selling, investors started buying. And not just the usual suspects—everyone from small holders to whales began accumulating simultaneously.

This marks the first time since late November that we've seen such broad-based accumulation across all investor cohorts, according to Glassnode data. It's a dramatic reversal from just one week earlier, when bitcoin was trading around $80,000 and retail investors were heading for the exits while whales remained cautious.

The Anatomy of a Capitulation

The journey from $80,000 to $60,000 represented more than just a price drop—it was one of bitcoin's most severe capitulation events in recent history. With prices falling over 50% from October's all-time highs, the market experienced what many considered a classic "blood in the streets" moment.

But here's where it gets interesting: Glassnode's Accumulation Trend Score by cohort has now climbed to 0.68, well above the 0.5 threshold that indicates net accumulation. This metric factors in both wallet size and the amount of BTC accumulated over the past 15 days, with scores closer to 1 signaling accumulation and scores near 0 indicating distribution.

The Middle Class Leads the Charge

Perhaps most surprisingly, the most aggressive buyers weren't the institutional whales or the retail minnows—they were the investors holding between 10 and 100 BTC. This cohort stepped up as the most active "dip buyers" as prices approached the $60,000 level.

This breaks the typical pattern we've seen in previous market cycles, where large holders usually lead the charge during major drawdowns. Instead, we're witnessing what appears to be a more democratized approach to value hunting, with mid-sized investors taking the initiative.

What This Means for Your Portfolio

For investors watching from the sidelines, this broad-based accumulation raises important questions about timing and strategy. The synchronized buying across cohorts suggests that the market may have found its pain threshold—the point where fear transforms into opportunity.

However, it's crucial to remember that accumulation doesn't guarantee an immediate price recovery. Markets can remain oversold longer than many expect, and what looks like a bottom today might prove to be just another step down tomorrow.

The key insight here isn't about predicting the exact bottom, but understanding how different types of investors respond to extreme market stress. The fact that we're seeing coordinated accumulation across wallet sizes suggests a shift in market psychology—from panic to pragmatism.