The Bitcoin market has recently exhibited several notable trends, as revealed by on-chain data.
These include significant stablecoin outflows from Binance, a decline in long-term holder (LTH) interest, and contrasting accumulation patterns among different wallet cohorts.
1️⃣ Stablecoin Outflows from Binance:
* One of the most notable data points comes from Binance’s stablecoin flows.
* Stablecoin netflows on Binance exceeded $1 billion by the end of May 2025.
* Stablecoin netflows are a critical liquidity indicator; negative netflows suggest that traders are moving funds out of exchanges.
2️⃣ Long-Term Holders (LTH) Reduce Exposure:
* The Net Position Realized Cap for LTH plummeted from over $28 billion to just $2 billion by late May 2025.
* This sharp contraction suggests that LTH entities are no longer adding significant Bitcoin exposure despite the market’s recent rally.
3️⃣ Diverging Accumulation Trends Among Wallet Cohorts:
The 60-day distribution and accumulation trends reveal a clear split in investor behavior:
* Entities holding between (1k~10k) BTC have gradually reduced their exposure as Bitcoin’s price climbed from $81K to $110K, systematically distributing their holdings in a phased manner throughout the rally's progression.
* In contrast, smaller retail cohorts (100–1K) BTC have been increasing their positions, aggressively buying into the rally and expanding their exposure as prices reached new highs above $110K.
Conclusion:
While past performance does not guarantee future results, these indicators suggest that investors should maintain vigilance.
The combination of heavy stablecoin withdrawals, reduced LTH accumulation, and shifting cohort behaviors signals a market in transition. Whether this sets the stage for a cooling-off period, a healthy consolidation, or renewed momentum will depend on how new capital re-enters the system and whether retail buyers can sustain the current rally without institutional reinforcement.
Written by Amr Taha
