Bitcoin Hovers Below $110,000: Is This The Calm Before The Storm?

by Khyathi Dalal Benzinga Staff Writer

Zinger Key Points

Bitcoin network activity drops to its lowest in 1.5 years, fueling “calm before the storm” speculation.
Long-term holders are quietly accumulating while whales remain patient, hinting at higher price targets.
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Bitcoin BTC/USD continues to hover below $110,000, but this quiet period might just be the prelude to an explosive move.

According to an analysis published by on-chain analytics provider CryptoQuant on Wednesday, Bitcoin's active network usage has fallen to just 3,470, the lowest level in 18 months.

Spot trading volume across centralized exchanges has also plunged, now sitting at levels not seen since October 2020.

Retail participation is down over 5%, creating a “ghost town” feel in on-chain activity.

But long-term holders are telling a different story.

In the background, 847,200 BTC has transitioned into long-term holdings, coins that haven't moved in 155+ days, signaling increasing conviction from seasoned investors.

This metric marks a significant supply shift from short-term traders to committed HODLers.

Also Read: Public Company Bitcoin Holdings Are A ‘Megatrend’ Just Getting Started, Says Bitwise’s Matt Hougan

Ethereum Futures Heat Up

Ethereum ETH/USD futures open interest has soared to an all-time high of 7.17 million ETH, while retail futures activity has spiked above its 1-year average.

This divergence between low spot/on-chain activity and rising derivatives interest across the board is often seen as a telltale sign of an incoming volatility surge.

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Whale Behavior: Still No Profit-Taking

Despite Bitcoin hovering just below its all-time high, whales are showing no signs of cashing out, a stark contrast to previous cycles.

Analysts interpret this as a vote of confidence: whales appear to be waiting for more dramatic market euphoria before even considering an exit.

The bullish case is that Binance whale inflows remain subdued.

During the 2024 peak, Binance saw $5.3 billion in BTC inflows; in earlier cycles, it surpassed $8 billion.

Current inflows are only around $3 billion and declining, a clear sign that whales aren’t rushing for the exits — yet.

Why It Matters: The combination of historically low on-chain activity, rising long-term accumulation, and muted profit-taking from major holders paints a picture of a market quietly positioning for a potential breakout.

The lack of selling pressure and accumulation at these levels suggests Bitcoin's current consolidation may precede a renewed push into price discovery.

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