Whales Accumulate as Market Sentiment Remains in Extreme Fear

Crypto market sentiment remains in 'extreme fear' as measured by the Fear and Greed Index, which has been stuck at a reading of 25 on July 15 and a 30-day average of 19. Discussion volume on social platforms about cryptocurrencies has plummeted to levels not seen since October 2024.

However, despite this bleak sentiment, wallets holding between 10 and 10,000 BTC have added approximately 11,000 coins in a single week. Bitcoin reserves on exchanges have declined to their lowest level in seven years, representing only 6.6% of the total circulating supply.

A divergence exists between the low sentiment readings and on-chain accumulation signals. While social volume and Fear and Greed Index are not reliable contrarian signals, data shows that whales are accumulating large amounts of BTC.

The current price level provides a set of references: Bitcoin trades below its short-term holder cost basis (around 72,200 dollars) and below the realized price (near 76,600 dollars). This implies that many recent buyers are in unrealised losses.