“Bitcoin and Ether Balances Are Increasing”

Armstrong indicated that internal platform data shows a rise in the number of Bitcoin and Ether units held by retail customers on Coinbase. While the dollar value of portfolios may have declined due to falling prices, the actual quantity of BTC and ETH in user accounts has increased.

He noted that balances recorded in February show coin counts that are either equal to or higher than those seen in December. This suggests that retail participants interpreted the market correction as a buying opportunity rather than a signal to exit positions. Armstrong described this behavior as a display of strong conviction during turbulent market conditions.

In practical terms, although overall portfolio valuations may appear lower in fiat terms, investors have been expanding their crypto holdings. The distinction between nominal dollar value and asset quantity is significant, particularly in volatile markets where price fluctuations can mask accumulation trends.

Falling Prices, Rising Coin Counts

This dynamic is not uncommon in crypto cycles. When prices decline, portfolio values measured in dollars naturally contract. However, if investors continue to purchase assets at lower prices, the number of coins they hold increases. Armstrong emphasized that Coinbase’s retail segment appears to be strengthening positions rather than liquidating them.

Such accumulation patterns are often viewed as a long-term signal of confidence, especially in flagship assets like Bitcoin and Ether.

CEO’s Personal Share Sales Draw Attention

At the same time, Armstrong’s personal financial activity has attracted scrutiny. While there is no indication that he sold Bitcoin or Ether, reports show that he sold approximately $550 million worth of Coinbase stock over the past nine months.

Coinbase shares, which surpassed $400 last year at their peak, recently closed at $164. Armstrong, who founded the company, is estimated to have a net worth of around $7.5 billion. The contrast between retail investors accumulating crypto and the CEO reducing exposure to company shares has become a point of discussion.

This content is not investment advice. Cryptocurrency markets involve significant risk, and individuals should conduct their own research before making financial decisions.

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Decline Among Whale and Shark Wallets

According to on-chain metrics, wallets holding between 10 and 10,000 BTC—commonly referred to as whale and shark wallets—now control approximately 68.04% of Bitcoin’s total circulating supply. This represents the lowest concentration observed since late May, when Bitcoin reclaimed the $100,000 level after several months below it.

Over the past eight days alone, these large holders have collectively reduced their positions by 81,068 BTC. During the same period, Bitcoin’s price dropped from around $90,000 to near $65,000, marking a decline of roughly 27%. At the time of writing, Bitcoin is trading at $64,792, having recently bounced from intraday lows slightly above $60,000.

Why Large Holder Behavior Matters

Market participants closely monitor the actions of large Bitcoin holders, as their accumulation or distribution patterns often provide insight into broader market sentiment. Sustained selling from this cohort is frequently interpreted as a sign that major players are de-risking or adjusting exposure amid rising uncertainty.

Caution is not limited to on-chain data alone. Commentary from industry analysts suggests that sentiment across the market has turned increasingly pessimistic, with many expecting further downside in the short term.

Fear Index Signals Extreme Pessimism

This cautious outlook is reflected in sentiment indicators. The Crypto Fear & Greed Index has fallen to a reading of 9 out of 100, its lowest level since mid-2022. That period coincided with severe market stress following the collapse of the Terra ecosystem, underscoring the intensity of current fear levels.

Retail Investors Continue Accumulating

While large holders have been reducing exposure, smaller investors appear to be moving in the opposite direction. Wallets holding less than 0.1 BTC—often referred to as “shrimp” wallets—have reached a 20-month high. This cohort now accounts for approximately 0.249% of Bitcoin’s total supply, equivalent to around 52,290 BTC.

Historically, periods where large holders distribute while retail investors aggressively accumulate have often aligned with the formation of bear market cycles. As a result, the current divergence between institutional-scale wallets and retail behavior adds an additional layer of complexity to Bitcoin’s near-term outlook, suggesting that both price action and investor psychology warrant close observation.

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Exchange Balances Drop to Six-Month Lows

On-chain data shows a steady decline in Ethereum reserves on crypto exchanges over the past six months. After peaking at 12.31 million ETH in July, exchange-held supply has fallen to approximately 8.15 million ETH. Crucially, this drawdown occurred during a period when ETH prices remained largely range-bound, indicating that coins are being withdrawn rather than sold.

Over the past seven days, Ethereum has traded within a relatively tight band between $2,801 and $3,034. In this sideways market environment, staking has emerged as an increasingly attractive option for holders seeking yield while waiting for a clearer market catalyst.

Staking Demand Pushes Validator Queue to Capacity

The growing appetite for staking is now visibly straining Ethereum’s validator onboarding process. Roughly 3.6 million ETH is currently queued for staking, with an estimated wait time of around 63 days for new validators to enter the network.

In contrast, the exit side of the queue remains comparatively light. Only about 44,448 ETH is waiting to be unstaked, with an estimated processing time of just 18 hours. This imbalance reflects Ethereum’s built-in limits on validator entries and exits per epoch, which are designed to preserve network stability.

Nearly One-Third of ETH Supply Is Now Staked

Total staked Ether has climbed above 36 million ETH, accounting for roughly 29% of the circulating supply. Just a few months ago, this figure stood closer to 35 million ETH. In a proof-of-stake system, increasing staking participation is often interpreted as a long-term confidence signal, as it requires assets to be locked rather than kept liquid for potential sale.

Institutional and Whale Activity Reinforces the Trend

Large holders appear to be reinforcing this dynamic. Treasury-focused firm BitMine recently staked an additional 250,912 ETH, bringing its total staked balance above 2.5 million ETH—around 61% of its overall holdings. Meanwhile, several major staking wallets have collectively withdrawn more than 26,000 ETH from Binance, pointing toward further accumulation.

Shrinking Liquidity Meets Falling Volume

While daily ETH trading volume has slipped from over $27 billion to roughly $23.54 billion, the ongoing reduction in exchange supply suggests a tightening liquidity environment.

Taken together, Ethereum’s price may look stagnant on the surface, but underlying on-chain indicators point to strengthening long-term conviction. If demand rebounds, this tightening supply dynamic could become a critical factor in Ethereum’s next major move.

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Large Wallets Accumulate $53 Billion Worth of Bitcoin

According to on-chain data, major custody wallets have accumulated approximately $53 billion worth of Bitcoin over the past 12 months. Wallets holding between 100 and 1,000 BTC added a total of 577,000 BTC during this period, a development widely interpreted as a sign that institutional participation remains intact. This wallet segment also includes spot Bitcoin ETFs.

CryptoQuant founder Ki Young Ju noted that when exchanges and miners are excluded, these figures provide a relatively clean proxy for institutional demand. The total Bitcoin held by this cohort has increased by around 33% over the past 24 months, a timeframe that closely aligns with the launch of spot Bitcoin ETFs in the United States.

Steady Inflows Into Spot Bitcoin ETFs

US-based spot BTC ETFs have recorded cumulative net inflows of roughly $1.2 billion so far this year. This comes despite Bitcoin gaining only about 6% over the same period, suggesting that institutional investors are accumulating independently of short-term price action. Some market commentators argue that large-scale adoption of Bitcoin and Ethereum by institutions is still in its early stages, with the most significant impact expected over the coming decade.

Digital Asset Treasuries Gain Momentum

Another notable driver behind rising institutional exposure is the growth of digital asset treasuries (DATs). Led by Michael Saylor’s Strategy, these entities have reportedly acquired around 260,000 BTC since July, representing purchases worth approximately $24 billion at current market prices. Data from Glassnode shows that total DAT holdings have surged by 30% over the past six months, surpassing 1.1 million BTC and outpacing new supply from miners.

Retail Sentiment Remains Cautious

While institutional metrics paint a constructive picture, retail sentiment tells a different story. The BTC Fear and Greed Index has slipped back into “fear” territory, falling to 32 out of 100 after briefly entering “greed” for the first time since October. This shift followed Bitcoin’s pullback from $97,000 to below $92,000.

Rising geopolitical tensions, particularly escalating trade frictions between the United States and Europe, have fueled risk aversion across global markets. As a result, retail investors have adopted a more defensive stance.

Despite this divergence, on-chain indicators suggest that institutional capital continues to provide a solid structural foundation for BTC, reinforcing its long-term investment narrative even amid heightened short-term uncertainty.

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Why “Whale Accumulation” Can Be Misleading

One of the biggest pitfalls in onchain analysis is the misinterpretation of exchange-related activity as investor behavior. Centralized exchanges regularly reorganize their wallets for operational efficiency, liquidity management, and compliance reasons. This often involves consolidating funds from numerous smaller addresses into fewer large wallets.

From a data perspective, these consolidations artificially inflate the number of high-balance addresses. Onchain trackers may then flag this as whale accumulation, even though no actual buying decision has been made by a large investor. In other words, the data can reflect internal exchange movements rather than genuine market demand.

When these exchange-driven distortions are filtered out, the picture changes significantly. Large Bitcoin holders, particularly those with very high balances, continue to reduce their holdings overall. This suggests that distribution, not accumulation, remains the dominant trend among classic “whales.”

Mid-Sized Large Holders Also Show Weakness

The trend is not limited to the largest addresses. Wallets holding between 100 and 1,000 BTC are also experiencing a gradual decline in total balances. This behavior aligns with continued outflows from spot Bitcoin exchange-traded funds, which have reshaped how institutional exposure to Bitcoin is managed.

Since the launch of US spot Bitcoin ETFs in early 2024, market influence has increasingly shifted away from traditional whale wallets toward ETF structures. As a result, the historical impact of large individual holders on price action has become less pronounced than in previous cycles.

A Constructive Shift Among Long-Term Holders

Despite the lack of clear whale accumulation, onchain data reveals a more encouraging development elsewhere. Long-term Bitcoin holders—often considered the backbone of the network—have turned into net accumulators over the past month.

This shift comes after one of their most significant selling periods since 2019. The return to accumulation suggests that a major source of selling pressure may be easing, at least temporarily, which could help stabilize market conditions.

What Price Action Is Telling Us

Bitcoin has yet to stage a decisive recovery, but it has also avoided revisiting the sub-$80,000 levels seen in November. Holding above the $90,000 area indicates a market searching for equilibrium rather than entering a new phase of panic.

Overall, the data suggests that the popular whale accumulation narrative is overstated. While large holders are not leading a broad buying wave, the renewed confidence among long-term investors may prove to be the more important signal to watch in the coming period.

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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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Bitway offers a permissionless and fully on-chain infrastructure that enables Bitcoin holders to access on-chain financial products using their existing wallets and addresses. The goal is to build the missing layer that bridges Bitcoin liquidity between decentralized finance and traditional finance.

What is Bitway (BTW)?

Bitway positions itself as an “Internet Capital Gateway.” At the core of this approach lies the fact that a large portion of on-chain capital remains idle. Today, billions of dollars in digital assets are fragmented across blockchains, wallets, and exchanges, unable to directly access real yield sources in the global financial system.

Traditional finance offers institutional-level risk management and sustainable yields but is restrictive in terms of access. DeFi provides global access and transparency but often lacks stable and audited yield mechanisms. Bitway aims to create a neutral and reliable infrastructure layer between these two worlds.

Through this infrastructure, on-chain capital can be directed toward transparent and risk-managed strategies sourced from both DeFi and TradFi.

How Does Bitway Work?

Bitway is built on the Bitway Ledger, a fully Bitcoin-compatible Layer-1 blockchain. The protocol is designed to be directly compatible with Bitcoin addresses, Bitcoin wallets, and Bitcoin’s UTXO structure. Users do not need to create an EVM wallet, use a bridge, or deal with different address formats.

The system consists of multiple integrated components: Bitway Ledger, Bitway Lending, Bitway Earn, and the ɃTCT Bitcoin bridge.

Bitway Ledger: Bitcoin-Compatible L1 Appchain

Bitway Ledger is an appchain built on Cosmos-SDK and CometBFT, offering high transaction capacity and fast finality. Its most important difference is its support for fully Bitcoin-compatible address and signature structures.

Bitcoin Compatibility

• Supports Taproot and Native SegWit addresses
• Uses Bech32 and Bech32m address formats
• Transactions can be directly signed with Bitcoin wallets such as OKX Wallet, Unisat, and Ledger
• No need for MetaMask or EVM wallets

Additionally, Bitway Ledger includes a built-in SPV (Simple Payment Verification) client. This allows transactions on the Bitcoin mainnet to be verified with 6 confirmations.

Gas-Free Payment Experience

One of Bitway’s standout features is its gas-free payment mechanism. When users transact with Bitway’s native wrapped Bitcoin asset, BTCT, they do not need to hold a separate gas token. Transaction fees are managed through the protocol’s internal sponsorship mechanism.

This structure:

• Enables micro-payments
• Supports subscription-based payment models
• Provides instant settlement without intermediaries
• Offers suitable infrastructure for commercial integrations

Bitway Lending: Borrowing with Native BTC

Bitway Lending is a fully non-custodial lending protocol that allows Bitcoin holders to access liquidity without selling their assets. The system is built on Bitcoin’s UTXO model and Discreet Log Contracts (DLC).

Key Features

• BTC collateral is locked on the Bitcoin mainnet
• Loans are issued on the Bitway Ledger
• Loan approval and distribution are instant
• No credit score, KYC, or permission required

Collateralized BTC is held in 2-of-2 multisig vaults and can only be released under pre-signed conditions. The liquidation process occurs through oracle verification and pre-authorized CETs (Contract Execution Transactions).

Liquidation and Trust Model

In Bitway Lending, BTC collateral can only be released in four cases:

• Loan repayment
• Price-based liquidation
• Default at maturity
• Failsafe timeout

When liquidation occurs, third-party liquidators can purchase the collateral at a discount. After the debt is closed, any remaining BTC is returned to the user. The system minimizes trust assumptions by separating roles among oracles, validators, and the Distributed Collateral Manager (DCM).

Bitway Earn and the DeTraFi Approach

Bitway Earn is a practical implementation of the DeTraFi (Decentralized + Traditional Finance) model. Users can deposit assets into staking vaults on BNB Chain and other EVM networks to access institutional-level yield strategies.

Core Structure of Bitway Earn

• Audited staking vaults
• Market-neutral (delta-neutral) strategies
• Institutional custody solutions
• Normal and Flash Unstake options

Yields are regularly reflected in the vault, and users can close their positions at any time.

Tokenized Real-World Assets (RWA)

Bitway provides access to institutional-level RWAs such as tokenized treasury bills, commodities, and trade finance products. Yields can be calculated in Bitcoin terms and collected as BTC or fiat.

This structure aims to transform Bitcoin from merely a store of value into a productive capital asset.

BTCT: Bitway Bitcoin Bridge

BTCT is a validator-operated, FROST-based Bitcoin bridge embedded in the Bitway Ledger. Its main features:

• Gas-free BTC transfers
• Key refresh support
• No need for manual bridging steps
• Multi-chain liquidity routing

Bitway (BTW) Tokenomics

The native token of the Bitway ecosystem is Bitway (BTW).

• Ticker: BTW
• Total Supply: 1,000,000,000 BTW

The BTW token has various use cases, including on-chain incentives, governance mechanisms, protocol fees, and supporting ecosystem growth. Token-based incentive models are expected to be introduced in the long term for Bitway Earn and Lending products.

Additionally, Bitway Earn users earn BW Points on a time basis for every 1 USD deposited. These points are planned to be converted to BTW tokens in the future.

Bitway Investors

Bitway is backed by strong investors from various stages. These investors have deep expertise in both blockchain infrastructure and financial products.

Tier 1

• HashKey Capital
• YZi Labs (formerly Binance Labs)

Tier 3

• Symbolic Capital
• KR1
• Continue Capital

Tier 4

• Injective
• DECOM

Bitway Team

Bitway is developed by a team experienced in Bitcoin and on-chain finance. The team focuses on the long-term potential of Bitcoin-compatible financial infrastructures.

• Shane Qiu – Co-Founder

Official Links

• Website
• X (Twitter)
• Whitepaper

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The platform’s core goal is to place stablecoins at the center of daily workflows, simplifying “last-mile” financial operations and providing businesses with a borderless financial freedom space.

What is AllScale?

AllScale is built on the idea that the future of finance should be borderless, instant, and inclusive. Unlike traditional banking, it offers an infrastructure that can operate globally without the need for physical branches, lengthy application processes, or complex integrations.

The platform is specifically designed for:

• Micro businesses
• Freelancers
• Remote working teams
• Digital content creators
• Startups serving global customers

Self-Custody Neobank Approach

One of AllScale’s most distinctive features is its self-custody (where control of assets remains with the user) neobank model. Users can:

• Create a global dollar account in seconds
• Avoid the need to store a seed phrase (mnemonic)
• Manage their assets with security layers like 2FA while keeping private keys under their control

This structure creates a strong alternative for users who want to avoid the risks of centralized exchanges as well as those with limited access to traditional banking.

Why Does AllScale Use Stablecoins?

AllScale’s entire infrastructure is built on stablecoins. The main reasons for this are:

1. Instant and Low-Cost Payments With stablecoins, payments are completed in seconds. Bank transfers, correspondent banks, and high transaction fees are eliminated.
2. Value Stability USD-pegged 1:1 stablecoins protect businesses’ value against currency fluctuations. This eliminates uncertainty in cross-border trade.
3. Access for Unbanked and Underbanked Users Only an internet connection is required. Even users without a bank account can join the AllScale ecosystem.
4. Automation and AI-Compatible Infrastructure The stablecoin-based structure is designed to be compatible with machine-to-machine payments, smart contracts, and AI agents.

AllScale Products and Modules

AllScale offers a modular structure that covers different business needs.

What is AllScale Pay?

AllScale Pay is an all-in-one payment and revenue management panel developed for individuals and businesses. Through this panel, users can:

• Create invoices
• Receive payments in stablecoins
• Track income and balances on a single screen
• Create a social commerce profile
• Withdraw funds to crypto wallets

AllScale Pay offers a strong alternative to traditional payment systems, especially for freelancers and digital service providers working globally.

Wallet Module

AllScale Wallet is at the center of the platform, and all other modules operate through this structure.

Wallet Features:

• Non-custodial structure
• Support for multiple stablecoins such as USDT and USDC
• Real-time USD equivalent display
• On-chain deposits and withdrawals
• Detailed transaction history

All funds from invoices, social commerce, or direct payments are collected in this wallet.

Invoicing System

AllScale’s invoicing system is specially developed for stablecoin-focused workflows.

How It Works:

• The user creates an invoice by entering the recipient’s email address and amount
• The system automatically sends the invoice
• The recipient can make payment even without an AllScale account
• The payment arrives in the AllScale balance as stablecoin

Key Features:

• Invoicing with USDT / USDC
• No registration required for external users
• PDF invoice support
• Various payment options such as card, wallet, or wire
• Detailed payment tracking

Social Commerce

Social Commerce is one of AllScale’s most notable modules.

With this feature, users can:

• Create a public profile
• List their services
• Receive orders and payments through a single link
• Turn social media followers into customers

Direct sales can be made through AllScale without coding or external platforms.

AllScale Payroll

AllScale Payroll offers stablecoin-based payroll management for global teams.

Payroll Features:

• Support for salaried employees and contractors
• Global payroll management
• Instant payments with stablecoins
• Adding/removing employees
• Payroll cycle tracking
• Approval and reporting processes

This system provides a significant advantage especially for Web3 and global startups with remote teams.

Regulation and Security Approach

AllScale places regulatory compliance at the core of the platform.

• Automatic KYC and KYB
• On-chain KYT (wallet and token controls)
• Compliance with global AML standards
• Integrated structure with current regulatory frameworks

This way, users can minimize regulatory risks while using stablecoins.

AllScale Investors

AllScale has raised $6.5 million in funding to date. The platform has received support from various investor groups.

Notable Investors:

• YZi Labs (formerly Binance Labs)
• Amber Group
• KuCoin Ventures
• Draper Dragon
• Aptos
• Generative Ventures
• y2z Ventures
• Cyberport Hong Kong

This investor profile demonstrates AllScale’s positioning in both the Web3 and institutional finance worlds.

AllScale Team

AllScale is managed by experienced founders from different fields:

• Shawn Pang – Co-Founder & CEO
• Ruoyang Wang (Leo) – Co-Founder & COO
• Alisha Li – Co-Founder & CMO
• Khalil Lin – Co-Founder

The team consists of experienced professionals in fintech, crypto, and payment systems.

Official Links

• Website
• X (Twitter)
• Whitepaper

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Dormant Bitcoin Supply Is Gradually Reactivating

In a report dated December 16, K33 Research Director Vetle Lunde highlighted a steady decline in Bitcoin supply that had remained untouched for more than two years. Since 2024, approximately 1.6 million BTC have re-entered circulation. At current market prices, this represents roughly $138 billion in value.

Lunde interprets this movement as clear evidence of continued on-chain selling by long-term and early-stage investors. These holders, who accumulated Bitcoin at much lower price levels, have been using recent market conditions to realize profits.

More Than Just Technical Wallet Movements

One of the key takeaways from the report is that the scale of reactivated supply cannot be explained solely by technical factors. While events such as the conversion of the Grayscale Bitcoin Trust into an ETF, wallet consolidations, or security-related address changes account for part of the activity, K33 argues they fall short of explaining the full magnitude of the supply shift.

Instead, the data points to deliberate distribution, with long-term holders gradually transferring coins back into the market rather than simply reorganizing custody structures.

Historical Context and Institutional Liquidity

K33’s analysis places 2024 and 2025 among the largest years on record for long-term Bitcoin supply reactivation, ranking second and third after 2017. However, Lunde emphasizes that the current cycle differs fundamentally from previous ones.

While the 2017 cycle was largely driven by ICO participation, altcoin speculation, and protocol incentives, the present environment is shaped by deep institutional liquidity. U.S.-based spot Bitcoin ETFs and expanding corporate treasury demand have created conditions that allow large holders to execute direct, sizable sales with minimal market friction.

Several notable transactions underscore this trend, including an 80,000 BTC over-the-counter sale completed in July, a 24,000 BTC whale transaction in August, and an additional 11,000 BTC sold during the October–November period.

Supply Structure Shifts and Forward Outlook

K33 estimates that roughly $300 billion worth of Bitcoin aged over one year has returned to circulation this year alone. Increased institutional liquidity has enabled long-term investors to exit positions at six-figure price levels, reducing ownership concentration and establishing new reference prices across a meaningful portion of the circulating supply.

Looking ahead, K33 expects selling pressure to gradually ease. With nearly 20% of Bitcoin’s supply reactivated over the past two years, Lunde believes the distribution phase is nearing saturation. If this trend continues, the two-year Bitcoin supply could resume an upward trajectory by late 2026, signaling a transition toward a more durable demand-driven market structure.

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2.6 Million HYPE Tokens Shifted to the Spot Market

Blockchain data shows that the Hyperliquid team’s wallet, identified as 0x43…a251, transferred 2.6 million HYPE tokens out of staking and into the spot market. The total value of this movement is estimated at $90.18 million.

A token transfer of this size naturally leads to speculation. Since it was directed toward the spot market, some investors interpret it as a potential signal of increased short-term selling pressure. Historically, large token movements from project-controlled wallets can contribute to temporary volatility, even if they do not necessarily signal a negative long-term outlook.

240 Million HYPE Tokens Remain Staked

Despite this notable transfer, the wallet continues to hold a substantial amount of staked tokens. According to on-chain records, the same wallet still contains 240 million staked HYPE, valued at approximately $8.36 billion.

This detail is important because it shows that the transferred amount represents only a small fraction of the team’s total holdings. For many observers, such a massive remaining staked balance indicates that the team still maintains strong long-term confidence in the ecosystem.

Potential Market Impact and Investor Expectations

Significant token movements like this are closely monitored, as they can influence investor behavior and short-term price action. The latest transfer may lead to:

• Increased liquidity in spot markets,

• Short-term volatility due to uncertainty,

• Heightened attention to the team’s future on-chain activities.

Still, the fact that the vast majority of tokens remain locked in staking suggests a continued commitment from the team and may help stabilize long-term sentiment.

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