Bitcoin Still Being Bought, Just Much More Cautiously, Report Finds
Short‑term accumulation eases while whale holdings continue to rise, hinting at a possible shift in market dynamics.

Price turbulence and continued demand

Bitcoin’s recent price swings have been dramatic. After surging past $126,000 in early October, the digital gold fell to roughly $60,000 before clawing back to the $68,000‑$70,000 range. The volatility has not halted purchases entirely; both retail and institutional participants remain on the buy side, betting on a future rally. However, the tempo of buying among short‑term holders has noticeably decelerated.

Short‑term holder activity slows

Analytics firm Alphractal tracked the net change in short‑term holder positions over a rolling 90‑day window and reported a downward trend in the net‑position figure. Although the metric remains in positive territory—indicating that short‑term participants are still net buyers—the rate of accumulation has tapered off sharply in the past few weeks.

The slowdown, according to Alphractal’s founder Joao Wedson, suggests waning demand momentum among traders who typically flip positions within days or weeks. “Even as institutional funds like Strategy increase their exposure, the broader cohort of short‑term holders is not adding to their positions at the pace seen three months ago,” Wedson said. He added that assessing the entire Bitcoin blockchain, rather than isolated accounts, provides a clearer picture of underlying demand.

Historically, such a decline in short‑term net inflows has preceded periods of market consolidation, heightened volatility, or broader regime shifts. The current reading may therefore be an early indicator that the market is moving into a more measured phase.

Whale behavior tells a different story

In contrast to the muted short‑term activity, CryptoQuant’s monthly‑average whale‑holding data shows a fresh surge in large‑scale accumulation. Over the last month, addresses classified as “whales” (those holding at least 1,000 BTC each) added more than 200,000 BTC to their combined balances, taking total whale‑owned supply from roughly 2.9 million BTC to just over 3.1 million BTC.

While some of the recent increase in whale inflows to exchanges could signal short‑term selling pressure, the longer‑term metric indicates net buying. CryptoQuant notes that the last time a comparable buildup occurred was during the April 2025 correction, when whale purchases helped absorb market sell‑offs and fueled the subsequent climb from $76,000 to the $126,000 peak.

What the data may mean for the market

• Cautious optimism: The continued, albeit slower, net buying by short‑term holders suggests that confidence in a price rebound persists, but traders are more selective after the recent swing.
• Institutional influence limited: Even as high‑profile institutional funds increase allocations, their activity does not appear to be translating into broader short‑term enthusiasm.
• Whale accumulation as a floor: The rising whale holdings could act as a stabilising force, providing liquidity and potentially cushioning further downside moves.
• Potential for consolidation: A combination of reduced short‑term demand and strong whale accumulation often precedes periods of price consolidation, where volatility may remain elevated while the market seeks a new directional bias.

Key takeaways

Conclusion

Bitcoin’s market participants are still net buyers, but the enthusiasm of short‑term traders has noticeably cooled. Meanwhile, the largest holders continue to increase their positions, echoing a pattern seen during previous corrective phases. Investors and analysts will likely watch these opposing dynamics closely, as they could shape the next chapter of Bitcoin’s price trajectory—whether that involves a prolonged consolidation, renewed volatility, or the start of a new upward move.

Source: https://cryptopotato.com/bitcoin-still-being-bought-just-much-more-cautiously-report/