Bitcoin ended July with strong momentum before slipping below the $63,000 level during the opening days of August. While the recent pullback has made investors more cautious, new on chain data suggests buyers continue accumulating BTC at current prices.
Recent blockchain data indicates that approximately 155,000 BTC changed hands within the $62,000 to $65,000 cost basis range during the latest correction. This price zone now represents the largest concentration of Bitcoin supply, accounting for roughly 0.7 percent of the circulating supply.
Long Term Investors Continue Buying
According to Bitfinex’s latest market report, the growing concentration of Bitcoin within this price range suggests fresh buyers absorbed selling pressure instead of existing holders exiting their positions.
The report also highlighted a clear difference in behavior between long term and short term investors. Long term holders continued adding to their Bitcoin positions, while many short term holders reduced exposure near their original purchase prices.
Despite the continued accumulation, overall market activity has slowed. Bitcoin entered August after gaining 7.3 percent in July, consistent with the asset’s historical seasonal performance, but spot trading volumes have fallen to levels not seen since late 2023.
Institutional Demand Softens
Institutional sentiment has also weakened in recent days. US spot Bitcoin exchange traded funds recorded net outflows of $61.5 million over the past week, ending a three week streak of positive inflows and signaling reduced demand from larger investors.
The options market has become more defensive as traders increasingly pay higher premiums for downside protection. However, implied volatility remains near multi year lows, indicating expectations for relatively limited price fluctuations.
Broader macroeconomic conditions continue to influence market sentiment. The US economy expanded by 1.5 percent during the second quarter, while private domestic demand increased 3.9 percent, supported by consumer spending and investment related to artificial intelligence.
Inflation remains another key factor for investors after personal consumption expenditures prices rose at an annualized rate of 5.1 percent. Meanwhile, the 10 year real Treasury yield climbed to 2.41 percent, placing it just nine basis points below a level that some analysts believe could become increasingly challenging for non yielding assets such as Bitcoin.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
