Market Consolidation Continues: Whales Accumulate as Supply Tightens
Bitcoin is consolidating in a narrow price range after rebounding to $65,100, according to analytics firm Glassnode. Despite the recent recovery, market activity remains subdued, with lower leverage and weak on-chain activity.
The derivatives market also indicates caution, as funding rates for long positions have fallen sharply, suggesting traders are using less leverage. Regulated investment products have shifted to net outflows, and weekly trading volumes have declined.
However, some positive signals emerge from the data. Large market participants, or 'whales,' continue to accumulate Bitcoin, with wallets holding between 10 BTC and 10,000 BTC buying nearly 19,700 BTC over eight days.
CryptoQuant reported that 374,000 BTC moved into the long-term holder category, which reduces the likelihood of these coins being sold in the near term, thus tightening supply on the market.