Bitcoin continues its bullish trajectory despite a marked decrease in whale wallets, showcasing a market divergence fueled primarily by institutional accumulation and substantial spot ETF inflows. This pattern closely resembles dynamics observed during Bitcoin’s 2021 bull market cycle.
The number of wallets holding 10,000 BTC or more has notably declined, yet prices have maintained upward momentum against conventional expectations. Significant institutional accumulation is offsetting whale sell pressure, with public firms like MicroStrategy and Marathon Digital Holdings leading the charge. MicroStrategy alone now holds nearly 2.9% of Bitcoin’s total supply following aggressive purchases.
Spot Bitcoin ETFs continue attracting massive capital, with total assets under management reaching $151.28 billion. July saw particularly strong activity with $4.83 billion in net inflows, reflecting persistent institutional and retail demand through regulated vehicles.
This institutional participation delivers crucial market liquidity and enhances investor confidence, effectively reducing Bitcoin’s trademark volatility while providing price stability. Market observers note capital flows are creating a protective buffer against sharp downward movements.
Market analysts project the current bull cycle could conclude around October based on historical patterns, though persistent institutional demand may mitigate potential corrections. If accumulation continues at current levels, any resulting downturn is anticipated to be comparatively shallow rather than severe.