Bitcoin Faces Longest Consolidation This Summer as Whales Buy, Exchange Balances Fall and Options Seek Downside Protection

According to a new Martixprot report, Bitcoin endured one of its longest consolidation phases this summer, with market responsiveness to price shocks noticeably reduced. The analysis highlights a prolonged period of sideways trading that has tempered short-term volatility metrics and recalibrated trader risk models.

On-chain metrics show shifts in fund flows and custody profiles: retail-oriented wallets have continued net selling while institutional and large-cap holders have incrementally accumulated, coinciding with falling exchange balances. These dynamics suggest a reallocation of supply that may influence liquidity depth and order-book resilience.

In derivatives, the options market exhibits elevated demand for downside protection, and sentiment indicators are currently skewed toward risk aversion. With the upcoming Fed meeting, incoming inflation data and fiscal developments, market participants should monitor potential spikes in market volatility and the ability of mainstream positions to adjust to changing conditions.