Emre Yumlu 
While the broader crypto market continues to trade under cautious conditions, on-chain data is beginning to signal a notable behavioral shift among long-term participants. Bitcoin (BTC)’s most patient holders appear to be stepping back from selling, while large Ethereum investors are quietly increasing their exposure. Together, these trends suggest that underlying market dynamics may be starting to stabilize.
Long-Term Bitcoin Holders Pause Distribution
Wallets holding Bitcoin for at least 155 days have shown a clear slowdown in selling activity. These long-term holders reduced their combined balance from roughly 14.8 million BTC in mid-July to about 14.3 million BTC by December. Recent data, however, indicates that this distribution phase has stalled.
Historically, long-term holders tend to sell during periods of strength and pause when prices approach perceived value zones. Their decision to stop trimming positions is often interpreted as a sign that downside momentum may be weakening. In previous market cycles, similar pauses have preceded short-term relief rallies or consolidation phases.
Ethereum Whales Increase Exposure
As Bitcoin selling pressure cools, Ethereum is seeing renewed interest from large holders. Over the past week alone, addresses holding more than 1,000 ETH collectively added approximately 120,000 ETH to their balances.
These large wallets now control close to 70% of Ethereum’s circulating supply, a share that has been steadily rising since late 2024. The growing concentration suggests that institutional players and high-net-worth investors are positioning for longer-term developments rather than short-term price action. This behavior is often associated with strategic accumulation rather than speculative trading.
Capital Rotation From Metals to Crypto
Market participants have also observed early signs of capital rotating away from precious metals and back into digital assets. Following strong moves in silver, palladium, and platinum, momentum in those markets appears to be fading. As a result, investors may be reallocating capital toward Bitcoin and Ethereum, assets that tend to benefit when risk appetite gradually returns.
Such rotations are common during transitional market phases, particularly when investors seek alternative growth opportunities after commodity rallies lose steam.
Market Sentiment Remains Fragile
Despite these constructive signals, price action remains choppy. Bitcoin has traded within a relatively narrow range between $86,744 and $90,064 over the past seven days. Notably, price spikes during the holiday period coincided with rising fear and uncertainty, reinforcing the tendency for markets to move against prevailing sentiment.
As prices pulled back, traders became more cautious, highlighting the fragile confidence still present across the market.
US-Based Selling Pressure Persists
One ongoing headwind is continued selling pressure from US-based traders.
The Coinbase Bitcoin Premium Index remains in negative territory, signaling weaker demand and elevated risk aversion in the US market. Until this metric stabilizes, short-term volatility is likely to remain a defining feature of price action.
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