The rapid drop of Bitcoin to the 113,000 USD range may worry many investors. However, data from the spot market tells a completely different story: this drop seems to be accompanied by strong intervention from large capital.
Massive Trading Volume: What are the Whales Doing?
On August 1, Binance recorded a spot trading volume of Bitcoin up to 7.6 billion USD — an unusually high figure amid the price plummeting from over 118,000 USD to nearly 113,000 USD.
This massive volume indicates that there is not only panic selling occurring, but there is likely strong buying from institutional investors or whales. This development is similar to what happened on June 22, when Bitcoin hit a local bottom before recovering.
At the time of writing, BTC is hovering just below the 114,000 USD mark, with trading volume gradually decreasing. This decline in volume may signal that volatility is cooling down, and the most stressful period has passed.
Fed Liquidity Soars – A Lever for Risk Markets
At the same time, the net liquidity of the Federal Reserve (Fed) has increased to 6.17 trillion USD – the highest level in months.
In the macroeconomic context, pumping additional liquidity means more cash is circulating in the system, which often increases demand for riskier assets, including cryptocurrencies.
In fact, similar liquidity increases at the end of 2023 and early 2024 coincided with strong price increases of Bitcoin. If history repeats itself, this could be a catalyst for a new recovery of BTC.
Over 90% of Bitcoin Supply is Still Profitable
Another positive signal: 91.6% of BTC supply is currently profitable. Historically, when this index remains above 90%, it often signals that the market is in a stable state before major price increases. This shows that the recent correction has not shaken the confidence of long-term investors.
The combination of massive trading volume on Binance, soaring Fed liquidity, and a high profit supply ratio creates a favorable context for Bitcoin. Although the price of BTC may continue to fluctuate in the short term, on-chain data and macro factors indicate that the market is more likely accumulating rather than preparing for a deep plunge. If this trend continues, Bitcoin may not only recover but also move towards a new breakout.