Bitcoin faced renewed selling pressure late last week as spot exchange-traded funds recorded heavy withdrawals. Data showed that Bitcoin spot ETFs registered combined outflows of about $773 million between October 22 and 23. Over the same two-day period, Bitcoin fell 3.45%, extending its decline as the market moved toward the weekend.
Despite the weakness in ETF flows, activity among major Bitcoin holders appeared to be moving in a different direction. A CW8900 analyst observed that the 12-month change in whale holdings was approaching positive territory, indicating that large holders were easing their net selling activity.
According to the analyst, whale selling pressure has steadily weakened since July. Whale holdings have improved significantly, with the deficit narrowing from about 282,000 BTC to roughly 39,000 BTC. This means whales have added around 243,000 BTC to their holdings in three months, signaling a clear shift toward accumulation.
Market valuation data also provided some context for Bitcoin’s recent movement. On July 1, when the cryptocurrency traded near $59,300, the MVRV indicator stood at 0%. The indicator later climbed to 32% toward the end of September before retreating to approximately 25%.
The MVRV indicator expresses the ratio of market value to realized value as a percentage. Lower readings generally indicate periods of significant undervaluation, while elevated levels can point to excessive optimism and stretched market conditions. Drawing on historical market cycles and the latest indicator reading, CW8900 suggested that Bitcoin remains in the early or middle stages of accumulation, rather than nearing the end of the cycle.
Price action on the three-day chart also maintained a constructive structure, supporting the view that Bitcoin could be undergoing a broader change in market conditions despite its recent pullback.
Another potentially supportive factor was the movement of Bitcoin on exchanges. Since September 22, Bitcoin outflows from exchanges have exceeded inflows over the 30-day period, indicating a decline in the amount of BTC available for trading. A sustained reduction in exchange-held supply can limit the amount of cryptocurrency readily available for sale.
Meanwhile, the futures sentiment indicator climbed from -0.5 to 0.3. Although the indicator moved into positive territory, its proximity to zero suggested that neither buyers nor sellers had established a clear advantage.
CW8900 warned that the outlook could deteriorate if exchange inflows resume while futures positioning turns negative. Such a combination would indicate rising available supply alongside weakening market sentiment, potentially increasing the risk of another period of bearish pressure.
Analysts, investors and crypto companies like American Bitcoin Corp. (NASDAQ: ABTC) will be tracking how these major industry indicators shift over the coming months, especially after the U.S. midterms.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
Austin, Texas
www.CryptoCurrencyWire.com
512.354.7000 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
