The key takeaways
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The Bitwise analyst believes that there is a good chance that the dips are good buys.
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As exchange deposit increases, the number of BTCs held by smaller holders is increasing.
Bitcoin’s recent weakness (BTCThe price of appears to be dampening enthusiasm. Google searches for the asset have fallen to an all-time low. These latest readings were similar to those seen during periods of bearishness, where caution is the dominant crypto sentiment.
Cointelegraph reported The Crypto Fear and Greed Index is now at a “Fear” Level of 24 is its lowest level in an entire year. “Greed” Reading of 71. The decline is similar to the sentiment seen in April when Bitcoin briefly dropped below $74,000. It also parallels past cycles of market fatigue from 2018 and 2022.
Bitcoin can be a great opportunity for panic: Bitwise
Bitwise analysts, despite a sharp drop in sentiments, believe that the current set-up favors accumulation and not retreat. Director and head of research André Dragosch, senior research associate Max Shannon, and research analyst Ayush Tripathi said that the recent correction was driven largely by external factors, including renewed US–China trade tensions that triggered broad-based risk aversion across global markets.
Bitwise’s weekly crypto market compass report The correction has been amplified due to a wave of record liquidations in the futures market, as Bitcoin’s open interest for perpetual futures fell by almost $11 billion. “the strongest decline on record.”
Dragosch claimed that this event of forced liquidation had now taken place “meaningfully exhausted selling pressure,” Set the stage for an anti-consumer buying window. Yen carry trade unwind In August 2024,
“Our in-house Cryptoasset Sentiment Index has dropped to its lowest level since that period,” “The analyst stated, adding” “Historically, such extremes have marked favorable entry points ahead of seasonal strength in Q4.”
Related: Bitcoin retail interest is in ‘bear market’ as crypto sentiment flips to fear
Bitcoins are being held by smaller holders amid pressure from miners
This view is supported by Onchain data. Glassnode reported The accumulation of smaller Bitcoin owners, between 1 BTC and 1000 BTC in recent days has offset the reduced purchasing by larger holders. It is clear that the retail and mid-tier investor community has a renewed sense of confidence, despite market volatility.
Other indicators, however, paint a much more complicated picture. CryptoQuant data showed The largest inflow to date has occurred since July, when miners deposited 51,000 BTC, or over $5 billion, at exchanges. This activity is often an indicator of sell-side pressure as miners move their holdings into exchanges in order to hedge or liquidate positions.
As well, data may also indicate that some long-term owners are exiting positions. indicated The largest monthly sale since January 2025 is 265,715 BTC.
Bitcoins’ stability at around $110,000 suggests that ETFs or institutions are absorbing any excess supply. These opposing flows indicate that the market has moved from capitulation to reaccumulation. Bitwise analysts see this as the basis for a strong Q4
Related: Bitcoin Coinbase Premium keeps BTC above $110K: Will this level hold?
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Source: cointelegraph.com
