Despite rising geopolitical tensions, Bitcoin holds a level above $104,500. However, a recent CryptoQuant report raises concerns about the future of the cryptocurrency market.
Decline in Bitcoin Demand
Data from CryptoQuant reveals a sharp decline in interest towards Bitcoin. This is particularly noticeable in the U.S.-based spot Bitcoin ETF sector, where net inflows into these funds have decreased by more than 60% since April.
Additionally, the accumulation rate of Bitcoin by whales, large investors, has halved recently, highlighting a weakening buying strength in the market. The company's Demand Momentum tracker is currently at historical lows.
In light of these findings, CryptoQuant analysts caution that if the current trend persists, Bitcoin prices could test important support levels at $92,000, and in a more pessimistic scenario, at $81,000.
Institutional Players' Strategies
Blockchain analysis company Glassnode does not view the current market stagnation entirely negatively. The firm interprets the decline in market activity as a natural outcome of the crypto ecosystem increasingly influenced by institutional investors. Continued large-volume transfers indicate that these main players remain active in the market.
Furthermore, there is notable growth in derivatives market volumes now exceeding spot market volumes by up to 16 times. This ratio suggests that market participants are engaging with more complex strategies and risk management tools, thereby deepening market behavior.
Current Stability of Bitcoin
Santiment’s data shows a marked divergence between small and large investors. In the last 10 days, the number of large wallets holding 10 or more BTC increased by 231, while the number of small wallets holding between 0.001 and 10 BTC decreased by over 37,000. Historically, such periods when individual investors flee the market and large investors accumulate often precede upward price movements.
Some experts interpret Bitcoin’s current stability around $104,500 as 'smart money' preparing for a rise. Semler Scientific has announced plans to increase its holdings to 105,000 BTC by 2027 starting from 4,449 BTC.
The situation on the Bitcoin market remains tense, with analysts warning of potential risks. However, the interest from large investors may play a crucial role in the future direction of prices.
