It’s been a bumpy ride for the king of crypto. Bitcoin lingered just above $90,000 on Wednesday, while Ethereum hovered near $3,041, both showing noticeable swings after a challenging seven days.
Over the past week, Bitcoin dropped more than 12%, and Ethereum shed around 11%, according to the latest market updates. Traders point to a mix of on-chain activity and broader macroeconomic pressures as the main drivers behind these swings.
Long-Term Holders Shift Positions
CryptoQuant CEO Ki Young Ju explains that much of the recent movement comes from long-term holders transferring coins between wallets or into new hands.
Older Bitcoin holders have been selling into institutional buyers, including corporate treasuries and spot ETF funds, which then lock away the assets for long-term storage.
Earlier this year, heavy selling by OG whales influenced price peaks, but now fresh liquidity from different institutional sources is altering the market’s supply absorption.
On-Chain Signals Suggest Routine Correction
Despite the volatility, on-chain metrics indicate this may be a mid-cycle correction rather than a full-blown market reversal. Short-term holders were reportedly panic selling, while long-term holders were engaging in standard profit-taking.
Some new buyers continued to accumulate Bitcoin during the dip, although the inflows weren’t enough to offset selling from nervous traders. Bitcoin’s pullback from highs near $126,000 appears to be part of a broader market rebalancing.
Market-wide, more than $1 trillion has been wiped from crypto valuations over the past six weeks, with the total market cap down by roughly 25% since early October highs.
CoinGecko reports that Bitcoin alone fell about 25% during this period, highlighting thinner trading flows and weaker conviction from both retail and institutional participants.
Large Buyers See Opportunity in the Dip
Samson Mow, CEO of JAN3, told reporters that some buyers are less sensitive to short-term price swings and view dips as a chance to increase their positions.
He mentioned firms like Strategy and other companies with large treasury budgets, as well as stablecoin issuers and high-revenue enterprises, who can continue accumulating Bitcoin during this period.
At around $95,000, Mow described Bitcoin as offering a near 20% “discount” for these investors, making accumulation appealing while supply remains constrained.
Market Now Tied to Macro Dynamics
Analysts from Nansen and other firms note that Bitcoin is behaving increasingly like a macro asset, reacting to liquidity conditions, the U.S. dollar, and policy signals.
Forced selling and risk-averse behavior following global events in early October also played a role in the pullback.
While institutional adoption through spot ETFs and political backing under U.S. President Donald Trump earlier this year provided support, they weren’t enough to prevent the recent declines.
Looking Ahead
As trading flows thin and the market recalibrates, participants are watching both chain signals and macro indicators closely.
The current environment may provide opportunities for disciplined long-term holders, while volatility continues to test short-term traders’ nerves.
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