Large Ethereum holders have significantly increased their positions, while institutional investors have withdrawn from crypto funds. The contradictory actions of whale aggregation and retail caution are a crucial inflection point for digital asset markets.
Whale Wallets Drive ETH Accumulation Wave
According to the blockchain analytics platform CryptoQuant, wallets holding 10,000-100,000 ETH have accumulated 7.6 million tokens since late April. This is a 52 percent growth in aggregate investor holdings by these large investors.
The opposite is true for smaller holders. Balance in wallets containing 100 to 1000 ETH reduced by 16%. This is a sign of a widening divide between institutional confidence and retail skepticism in the existing market terrain.
CryptoQuant analyst ShayanMarkets highlighted successive spikes in Ethereum spot trading volume. These surges have occurred multiple times since the price decline in early November. These patterns are often formed during late-stage compression phases before significant upward price movements.
The accumulation comes as the macroeconomic conditions show signs of improvement. There is a sense of optimism that there might be an end to the US government shutdown, and this has increased risk appetite in digital assets.
Source: CryptoQuant
Bitcoin Tests Key Support as Market Sentiment Shifts
Bitcoin has recovered to around $105,029 at the time of writing, following several declines below the psychological $100,000 mark. QCP Capital released a report detailing this price action alongside improved market sentiment. The cryptocurrency joined equities in a broad relief rally driven by hopes of a shutdown resolution.
The rebound came despite ongoing outflows from spot ETFs and sustained selling from long-term Bitcoin holders. QCP Capital compared the current wave of original holder selling to past distribution events like Silk Road and Mt. Gox liquidations. However, deeper market liquidity has absorbed these supply shocks without breaking structural momentum.
Risk reversals indicated fading demand for downside protection. This shift signals reduced market fear of another major liquidation event. Bitcoin’s strong defense of the $100,000 level provides technical support for the near-term price structure.
QCP Capital expects continued range-bound trading in the medium term. Digital Asset Treasuries remain a key sentiment driver but have shown limited activity during tight trading ranges. Any push above $118,000 could face renewed selling pressure from long-term holder wallets unless macro tailwinds and ETF inflows strengthen substantially.
Institutional investors withdrew $1.17 billion from crypto investment products last week. This marks the second straight week of heavy redemptions amid renewed market volatility and macroeconomic uncertainty. Trading volumes in exchange-traded products remained elevated at $43 billion despite the outflows.
The United States market drove the majority of withdrawals. American funds saw $1.22 billion in outflows during the period. Germany and Switzerland bucked the trend with modest inflows of $41.3 million and $49.7 million, respectively.
Bitcoin funds experienced the largest outflows, totaling $932 million. Ethereum funds followed with $438 million in redemptions. Short Bitcoin ETPs recorded $11.8 million in inflows, marking their strongest performance since May 2025.