Bitcoin’s Market Structure Strengthens Despite Slower Trading Activity — Here’s Why

Despite a noticeable cooldown in trading volumes, Bitcoin’s underlying market structure has continued to strengthen. The price action has stabilized within a narrow range as long-term holders maintain firm conviction. As more BTC flows into cold storage and supply on exchanges tightens, the market is transitioning from hype-driven swings to steady structural support.

How The Price Compression Builds Energy For A Larger Move

CIO and founder of MNFund and MNCapital, CryptoMichNL, emphasized that Bitcoin shares a strong correlation with the Nasdaq. While Nasdaq continues to show steady resilience, BTC has stalled behind. This mismatch creates a mispricing and market divergence, which is why the path toward $100,000 remains wide open and why the 4-year cycle thesis doesn’t hold up.

Recently, BTC saw a massive correction, dropping from $115,000 to $80,000 in just two weeks. During that same liquidation period, what LVisserLabs calls the rotation between Pure Vol vs. Pure Profitability or Beta vs. Quality has fallen sharply. Beta here refers to high-volatility, high-beta stocks, which are essentially tech stocks that drive the markets. Meanwhile, Quality means more risk-off assets, including high-quality, profitable, and stable companies. 

Currently, BTC has stalled after the sell-off, and the Beta assets have recovered substantially, implying that the stocks have inverted their loss with the big drop and are now grinding upwards, signaling that risk-on appetite is clearly back. With this kind of structural divergence, it’s likely that in the coming weeks or months, BTC will grind upward to $110,000 and $115,000 levels, reversing the drop as the entire correction was a little dubious.

CryptoMichNL advised that instead of relying on a time-based sounding the 4-year cycle assumption, it is better to focus on the charts and macro relationships that directly influence BTC price.

On-Chain Activity Shows Clear Confidence From Big Money

The ambassador of StandXOfficial and the KOL of Binance, who is also an advisor at KOLsAgency, Investor Ucan, has highlighted that the evidence of Bitcoin’s latest upward move is already on-chain. The last six hours have revealed a clear surge of institutional demand. On-chain data shows that Binance purchased 7,298 BTC, Coinbase bought 1,362 BTC, Wintermute bought 2,174 BTC, BlacRock bought 1,362 BTC, and an unknown whale bought 6,192 BTC. In total, 20,438 BTC were purchased in just six hours, valued at approximately $1.9 billion.

Ucan noted that the timing of this purchase is what stands out. These inflows hit the market hours before the Federal Reserve’s upcoming employment data was released. Institutional is clearly expecting a supportive outcome. A positive print refers to easing expectations and fresh liquidity on the horizon. Retail traders are reacting, and the institutions are anticipating early. If the Fed confirms what these flows imply, today’s buying won’t look like simple momentum, but preparation.

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