Bitcoin Market Divides Amid Ongoing U.S.-Iran Tensions

The Bitcoin market is experiencing a notable division amid the ongoing U.S.-Iran geopolitical tensions, which have persisted for approximately six weeks. According to ChainCatcher, the market is split between passive buyers, such as those involved with Strategy and spot ETFs, who continue to accumulate, and entities like whales, mining companies, and some sovereign holders, who are reducing their holdings. On the selling side, there is a clear trend: whale addresses holding between 1,000 and 10,000 BTC have shifted from net buying to significant net selling, with their holdings changing from an increase of about 200,000 BTC to a decrease of 188,000 BTC this year. Publicly listed mining companies, under pressure from high costs, have also been selling off, with weekly sales exceeding 19,000 BTC. Additionally, sovereign holders like Bhutan have reduced their Bitcoin reserves by approximately 70% since October 2024. Analysts note that despite market sentiment reaching extreme fear levels, Bitcoin's price has remained within the $65,000 to $73,000 range. This stability suggests that the price floor is primarily supported by a few institutional buyers. The current market's buying base is narrowing, and future trends will depend on whether institutional capital inflows can continue and break through key resistance levels.