- Older Bitcoin wallets transfer funds to Binance amid strategic repositioning.
- Market indicators show cooling phase, not collapse, say CryptoQuant analysts.
- Long-term holders shift coins for ETF benefits and diversification plans.
A wave of renewed on-chain activity from long-term Bitcoin holders is reshaping market sentiment this month. According to analysts at CryptoQuant, older wallets are transferring Bitcoin to Binance at the highest level since July, signaling an important shift among seasoned investors.
The movement is reflected in the “Exchange Inflow – Spent Output Age Bands” indicator, which spiked sharply on November 4. Transfers were led by coins aged between five and seven years, followed by those held for three to five years. These age groups often represent large investors who rarely move assets unless anticipating a major market shift.
Interestingly, data also points to a comeback from wallets holding coins for seven to ten years, a segment that has remained largely inactive since the previous market cycle. Historically, when such dormant coins move, it has often preceded critical turning points for Bitcoin.
Despite this renewed activity, Bitcoin’s price has held steady near $106,000 base as per recent data. This stability indicates a quiet redistribution phase rather than panic-driven selling, even amid the recent market correction.
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Whales Repositioning, Not Panicking
According to Dr. Martin Hiesboeck, head of research at Uphold, long-term holders may be transferring funds to exchanges for strategic reasons. He noted that many veteran investors are choosing to sell their holdings to repurchase them through Bitcoin ETFs, which currently provide notable tax benefits under U.S. regulations.
Additionally, some experienced holders are redirecting capital into blockchain-based projects that promise higher returns. Hiesboeck emphasized that these investors see the broader value in blockchain technology itself, describing it as the real revolution driving new opportunities across industries.
Adding to the trend, Lookonchain reported that early Bitcoin arbitrage trader Owen Gunden recently moved 11,000 BTC to an exchange, completing a final transfer of 3,549 coins and fully exiting his Bitcoin position.
Market Cooling, Not Collapsing
CryptoQuant’s Bitcoin Market Pulse Index (BMPI), a composite measure of exchange inflows, adjusted SOPR, hash price, and funding rates, shows the market is cooling toward a neutral zone rather than collapsing. Analysts describe this as a mid-cycle reset where speculative leverage is declining, miner profitability remains stable, and funding rates stay subdued.
These conditions reflect consolidation instead of capitulation, suggesting that the current phase is a healthy pause before the next market expansion. Consequently, Bitcoin’s long-term outlook remains steady, supported by disciplined investor behavior and controlled market dynamics.
The latest on-chain activity highlights that whales are repositioning their portfolios, not abandoning them. The market appears to be undergoing a calm, strategic reset rather than facing any structural collapse.
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