Airdrop Army

The Bitcoin market is feeling the pressure. Since the conflict between Iran and Israel intensified on Tuesday, buyers have been holding back. The tension has shifted focus, and CryptoQuant’s data shows it. The Net Taker Volume, a key metric that tracks market activity, has dropped by over $150 million. That’s no small shift.

J.A. Maartunn, a CryptoQuant analyst, noted that “buying pressure has remained subdued since the Iran strike.” And while there’s a ton of selling, the lack of buying above $100 million tells the real story. The market seems stuck in limbo, watching, waiting for something to change.

Sellers Drained, But Futures Spike

But the story doesn’t stop at buying volume. Bitwise’s research guru André Dragosch added more to the mix, noting that net buying volumes on spot exchanges have been on the decline for three days straight. He saw a sign of exhaustion from short-term sellers, though. A surge in long Bitcoin futures liquidations marked the highest levels since August 5, when Bitcoin hit its last low point.

This shows that sellers have emptied their bags, but the buyers are still on the sidelines. And it’s not just spot market players who are hurting. Dragosch also pointed out that short-term holders are sending more Bitcoins to exchanges at a loss, signaling a shift in sentiment. That change from a bullish view to a more neutral stance is being reflected in Bitwise’s Cryptoasset Sentiment Index.

Long-Term Hodlers Still Stacking

Meanwhile, Glassnode data reveals the illiquid supply of Bitcoin has reached an all-time high. This means hodlers are keeping tight grips on their coins while the supply of liquid Bitcoin has dropped to its lowest point this year. So, while the market’s quiet on the surface, there’s action behind the scenes.

Bitwise’s Ayush Tripathi said long-term holders, who’ve had their Bitcoin for over 155 days, are still stacking sats. This growing supply of long-term coins means confidence in Bitcoin’s long-term value remains, even as the short-term market sputters.

With everything on edge, QCP Capital analysts believe the crypto market’s slump is temporary. They pointed to the U.S. stock market’s recovery as a clue, expecting the crypto scene to bounce back as equities regain strength.