BTC price has broken through the $110,000 mark. Despite geopolitical tensions and tariff-related news creating uncertainty in the overall market environment, rational operations can still capture opportunities brought by this round of price increases.
Low retail participation in this market trend, with large token holders' dynamics becoming key price fluctuation indicators
Although BTC price has reached a historical high, traditional retail participation indicators remain surprisingly low, causing many traders to miss this round of price increases. This market trend largely lacks retail fund momentum. Unlike the enthusiastic atmosphere and high emotions of previous bull markets, this rise clearly lacks retail dynamics. Funding rates remain consistently low, retail trading activity is extremely weak, and other mainstream crypto assets are generally underperforming.
Different from previous bull market cycles, retail's proportion in BTC's current holding structure is no longer increasing. This contradicts a widely circulated view that BTC is still in an early stage of absorbing billions of new users. On-chain data shows that a large amount of circulating BTC is being continuously absorbed by a few whale-level wallets.
As this trend accelerates, clarifying how enterprise-level demand drives price behavior and its continuation cycle has become key to market judgment. Continuously monitoring on-chain data and wallet activity will help insight into the evolution of holding power structure and identify critical price ranges where large token holders might enter or reduce positions.
BTC ownership transfer in progress, with clear long-term allocation intentions
In this market trend, retail is essentially absent, which well explains why funding rates and trading volumes remain low. We are witnessing a quiet and orderly BTC ownership transfer—gradually moving from early users, investors, miners, and exchanges to a new generation of institutional investors represented by MicroStrategy. This structural transformation further explains the continued weakness in bullish option demand and implied volatility remaining at low levels.
The current price increase is primarily driven by continuous spot market accumulation, rather than speculative derivative trading, reflecting long-term market allocation intentions instead of short-term speculation sentiment.
During sudden market corrections, some traders often suffer significant losses due to misjudgments. The key to losses is not temporary liquidation during sharp declines—in some cases, this approach can be reasonable. The real problem is that they fail to identify potential correction risks in advance and even choose to ignore analytical conclusions when relevant warning signals have already appeared.
Disclaimer: Markets involve risks, and investments require caution. This article does not constitute investment advice. Digital asset trading may involve significant risks and instability. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
