Bitcoin's (BTC) recent price decline toward the $93,000 level appears to be primarily influenced by short-term market participants, according to new analysis from CryptoQuant. This suggests a growing divergence between activity on Binance and the behavior observed in institutional channels.
Retail Selling Versus Institutional Absorption
Data indicates a sharp surge in Bitcoin exchange inflows on Binance in recent days, with the figure rising from 5,500 BTC to nearly 15,000 BTC on November 14. CryptoQuant stated that this spike points to intense selling pressure from short-term holders and traders unwinding long positions as prices fell.
Additionally, the Binance BTC RHODL Inflow indicator shows a notable increase in the share of younger coins entering the exchange, alongside an almost complete collapse in older coin inflows. Such a pattern is evidence that panicked short-term investors, rather than long-term holders, are behind the selling pressure.
The situation appears different for institutional activity, which is showing a more measured approach. Balances at OTC desks have climbed to approximately 156,000 BTC, an increase of nearly 7,300 BTC over the past month. This marks the highest level observed since August.
While this does not necessarily indicate aggressive institutional buying, CryptoQuant explained that institutions are not selling into the downturn. Instead, they are quietly absorbing liquidity off-exchange. This steady accumulation is occurring without any major acceleration in demand, which could suggest that institutions are using the pullback to reposition themselves rather than exit the market.
Redistribution Phase or Bear Market?
Even as prices retreat, long-term investor appetite for Bitcoin continues to strengthen. For example, the Accumulator Addresses Demand indicator has now climbed past 352,000 BTC, with its 30-day moving average showing a steady rise. This trend indicates that committed, long-horizon buyers are continuing to add to their positions, confirming that Bitcoin is gradually moving from weaker hands into more resilient, patient portfolios.
According to the analytics platform, the market is currently in a redistribution phase. During this phase, Bitcoin moves out of speculative, short-term holdings and into the portfolios of larger and more committed investors. Historically, such transitions have paved the way for periods of stabilization and can lay the groundwork for renewed upside momentum, provided institutional demand persists.
However, not all market observers interpret the recent behavior in the same way. Kobeissi Letter, for instance, believes that the crypto asset has officially entered a structural bear market. This bear market, they argue, is driven not by weak fundamentals but by deep mechanical pressures. Factors such as excess leverage, thin liquidity, and over $1 billion in liquidations across multiple sessions clearly indicate that the market is breaking under its own weight.