Calm Before the Surge? Experts Declare Market Caution Amidst Active Whale Accumulation
Analytical platforms Glassnode and Santiment have published reviews on the current state of the cryptocurrency market. Experts note cautious consolidation amidst positive on-chain signals, while institutional and derivatives market activity remains restrained.
According to Glassnode, despite a pullback from near $66,700 to $64,000, Bitcoin continues to trade within an established range. The derivatives market shows a more cautious approach, with funding rates for long positions declining significantly, indicating reduced leverage usage. Regulated investment products have seen net outflows, and weekly trading volumes have decreased. Overall, the market is described as being in a calm transitional phase, supported by stable coin holding but constrained by cautious spot and derivatives activity.
Meanwhile, Santiment data reveals that large market participants, or "whales," are actively accumulating Bitcoin, adding 19,696 BTC over eight days. In contrast, activity from the smallest retail wallets is decreasing. This shift of coins to stronger hands is viewed as a positive signal. Additional analysis from CryptoQuant's Maartunn indicates that 374,000 BTC have moved from short-term to long-term holders, statistically reducing the likelihood of near-term sales and decreasing Bitcoin's liquid supply on the market.
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