After days of heavy outflows from Bitcoin (BTC) ETFs, fund wallets have begun to move coins. Fidelity, one of the last net buyers of the coins, has moved several tranches of BTC from its custodial wallet.
Fidelity, one of the ETF providers that also provides custody services, is moving coins out of one of its main wallets. Fidelity sent several identical transactions for 200 BTC that ended up in previously unmarked wallets.
Every deal It was then split into two addresses containing 50 BTC and another with 99.99 BTC. There are no signs of coins being sold or sent to the open market at this time. Unlike BlackRock and other funds, Fidelity does not store its assets in Coinbase Custody.
Transfers from wallets occur after all ETFs lose BTC, which may result in selling or moving 10,428 BTCThe recent outflows from Fidelity followed previous signs of selling, consistent with 16,000 BTC sold in August.
The cold wallet outflow follows a turbulent few days, with BTC falling to $55,000. While the volatility was expected by crypto natives, ETF traders panic-sold, demanding outflows from custodial wallets. BTC custodians for ETFs also don’t always sell their coins on the open market; instead, they provide other liquidity trades.
Bitcoin ETF sales coincided with continued outflows in Ethereum (ETH). Grayscale continued salemoving 15.47k ETH in four transactions on Coinbase Prime. ETH remains depressed, trading at $2,413.25 after a 60% decline over the past six weeks.
Institutional holders are also selling BTC
Ceffu, formerly Binance Custody for institutional BTC buyers, has also seen outflows to Binance hot wallets. More than 3,000 BTC have leaked from Ceffu wallets since August 26.
Seffu activity is still robust, including inflows from altcoins and tokens. The custodian shows no signs of capitulation, with activity on Ethereum, BNB Smart Chain, and Tron.
The recent sell-off from Ceffu wallets follows another 3,565 BTC move since July 31, which coincided with a major market correction in August.
In August, most institutions continued to lose coins, with only BlackRock showing no movement from its known wallets. Outflows came from Grayscale and Ark Invest, defying the market by absorbing up to 23,000 BTC.
While institutions and whales may be holding, the biggest pressure on the market is coming from short-term buyers. On average, BTC investors are in the money with a 50% gain, but short-term buyers are still sitting on unrealized losses. BTC is still trading at about 22% of its all-time high, a relatively small drawdown.
Only about 2.9% of BTC is held with unrealized losses, according to research from Glassnode. At the moment, short-term investors are not showing the panic associated with a full bear market, instead they are prepared for a longer period of choppy sideways trading.
In the current BTC price range, Glassnode classifies the overall sentiment as “enthusiastic bull market.” Researchers warn that BTC needs to hold above $51,000 to ensure further gains and avoid capitulation.
BTC Shows Slower Accumulation
BTC continues to show some price weakness, falling to $56,786.55. BTC trading volumes remain relatively flat at around $30-35 billion in 24 hours. The leading coin has not yet entered a panic sell-off, and liquidations have occurred without contagion.
Based on Rainbow chart BTC models dropped to the “sale” level, further increasing accumulation.
At the same time, BTC volatility has fallen again, from a peak of 3% over the past 30 days to an average of 2%. activity also decreased after the peak in the summer of 2024, as most balance transfers were completed. BTC holders also increased the number of new wallets containing 10,000 BTC to 1,000 wallets.
Over the last 24 hours, most of the large whale transactions have been in stablecoins, as additional liquidity is still waiting for better entry points into the market. There have been no whale trades in BTC for over a day.
The Bitcoin network typically sees peak transactions and whale activity on record price days. Even with Bitcoin's range-bound, accumulation and holding continues, with no signs of selling or capitulation. Miners also continue to hold close to 2M coins, while the withdrawal of new coins occurred relatively slowly.
Cryptopolitical report by Khristina Vasilyeva