Bitcoin’s market structure is getting stronger, even though trading volumes have dipped. Analysts say the foundation of the market keeps improving beneath the surface.
A mix of long-term holders accumulating, less Bitcoin sitting on exchanges, and price action tightening into a narrow range is creating a more stable setup. In short, the fast ups and downs are slowing down, and stronger hands are taking control.
A growing gap between Bitcoin and the Nasdaq
CryptoMichNL, founder and CIO of MNFund and MNCapital, pointed out that Bitcoin usually moves closely with the Nasdaq. But right now, the Nasdaq has bounced back strongly while Bitcoin is still lagging.
He calls this a “mispricing” — meaning Bitcoin may be undervalued compared to other risk assets.
This gap also puts pressure on the old four-year cycle idea. If markets are moving differently, the classic timing patterns may no longer tell the full story.
Market shift: Beta assets vs. Quality assets
After Bitcoin’s recent sharp correction, analysts noticed an interesting shift in behavior.
According to LVisserLabs:
- High-volatility “Beta” assets bounced back fast.
- More stable “Quality” assets, including Bitcoin, paused after the sell-off.
This bounce in Beta assets shows that risk-on appetite is returning in traditional markets — yet Bitcoin hasn’t fully reflected that shift yet. That’s another signal the market may be mispricing BTC.
On-chain data shows a burst of institutional buying
Investor Ucan highlighted a sudden wave of institutional activity. In a very short time window:
- large exchanges
- market makers
- and one major unidentified whale
made significant Bitcoin purchases just hours before the Federal Reserve released its employment report.
The timing suggests this wasn’t a random move. Institutions seemed to be positioning ahead of data they expected to support markets — acting early, while retail traders mostly reacted afterward.
This behavior shows that institutional players are becoming a stronger force in Bitcoin’s price movements. Their actions look strategic and planned, not based on hype or short-term momentum.
Long-term holders continue to strengthen the base
While all of this is happening, long-term holders are still keeping their coins off exchanges and moving more Bitcoin into cold storage.
This tightens supply and reinforces the idea that the market is transitioning from emotional swings to stronger structural support.
Even with lower trading volume, the foundation looks healthier.
Final thoughts
Bitcoin’s price may look quiet on the surface, but what’s happening underneath is far more important:
- long-term holders are accumulating
- exchange supply is shrinking
- institutions are quietly stocking up
- risk assets in traditional markets are recovering while BTC lags
Put together, analysts say this creates a setup where Bitcoin may not be reflecting its true strength yet — leaving room for a potential upside move when the market catches up.
