Bitcoin is showing fresh signs of demand, but the market has not delivered a clean breakout yet. On-chain data shows whales and other large holders have kept adding to positions over the past several days, buying more than 20,000 BTC in total, worth about $1.2 billion at current prices. At the same time, U.S. spot Bitcoin ETFs have drawn more than $750 million in inflows this week, pointing to a recovery in institutional demand that has partly offset selling pressure tied to disappointment over delays to the CLARITY Act.
Whale and shark addresses have accumulated more than 20,000 BTC since July 29
According to blockchain analytics platform Santiment, addresses holding between 10 and 10,000 BTC — described as whale and shark wallets — have absorbed more than 20,000 BTC since July 29. At current prices, that stash is valued at about $1.2 billion.
Santiment said most of that large-scale buying has been concentrated in the consolidation range after Bitcoin fell below $65,000. In a post on X, the firm said that as large holders continue to accumulate and retail traders sell in fear, the current transfer of supply makes a move above $70,000 more likely than a drop below $60,000.
Retail conviction has weakened as supply shifts toward longer-term holders
Santiment said smaller holders have turned more cautious under pressure from three negative factors.
- The July 30 Coldcard wallet hack, which led to as much as $120 million in Bitcoin being stolen;
- uncertainty created by the failed push for the CLARITY Act;
- and sluggish recent price action that has worn down the patience of smaller investors.
Based on on-chain data, Santiment said market supply has gradually been concentrating in the hands of longer-term holders.
U.S. spot Bitcoin ETFs posted $754.69 million in inflows this week
Demand has also picked up through regulated investment products. Data from SoSoValue shows U.S. spot Bitcoin ETFs brought in $754.69 million this week, putting the group on track for its best weekly showing since April this year.
Nexo analyst Liya Kalchev said the clearest change in the market has come from institutional money flows. She said U.S. spot Bitcoin ETFs have attracted more than $500 million in inflows so far in August, and the pace accelerated this week. More than $240 million came in on Wednesday alone, a sharp contrast with June, when ETFs recorded their worst month on record.
Buying has returned, but Bitcoin still has not cleared $65,000
The part that continues to puzzle the market is that whale accumulation and ETF buying have returned together, yet Bitcoin has not produced a meaningful upside break.
Kalchev said that muted response may itself say something about the makeup of current demand. In her view, the return of capital without a stronger price reaction suggests some of the new buying is more tactical and short term, rather than a large-scale move driven by long-term conviction.
She added that Bitcoin still needs to break above and hold $65,000 to rebuild a bullish trend and stabilize the market structure.
Technical setup leaves room for a rebound, while the CLARITY Act remains the main overhang
From a technical standpoint, Bitcoin's chart structure still points to the possibility of a further rebound. Even so, the U.S. Senate's inability to complete a vote on the CLARITY Act this month remains the biggest near-term obstacle for the market.
The CLARITY Act is widely seen as one of the key pieces of legislation for building a regulatory framework for the crypto market in the United States. Market participants had expected its passage to reduce regulatory uncertainty and draw more institutional money into digital assets.