Bitcoin Accumulators Ramp Up Purchases Amid Falling Market Liquidity
Bullish Bitcoin wallets continue to accumulate the cryptocurrency despite mounting unrealized losses and a tightening liquidity environment in the sector. This behavior emerges amid increasing market pressure, raising questions about the sustainability of this trend in supporting prices.
Analyst Dark Frost of CryptoQuant reported that large Bitcoin holders, known as accumulator wallets, purchased approximately 75,000 BTC between December 1 and 10, including 40,000 BTC in a single day. These wallets meet strict blockchain-defined criteria: they have no history of selling, maintain a high minimum purchase threshold, exhibit multiple cash flows, and are not linked to exchanges, mining entities, or smart contracts.
While this ongoing accumulation is typically viewed as a bullish signal, it is occurring against a backdrop of significant market stress. Derek Lim, head of research at cryptocurrency market maker Caladan, told Decrypt that “Bitcoin holders’ short-term losses continue to mount, with their assets losing between 20% and 30% of their value.” He noted, however, that historically, this pattern has indicated a transition from speculative trading to long-term investment, which is generally positive for market resilience.
The pressure is not limited to short-term investors. Glassnode data show that unrealized losses across the cryptocurrency ecosystem have reached nearly $350 billion, with Bitcoin alone accounting for approximately $85 billion. The analytics firm also highlighted declining liquidity across multiple blockchain indicators, warning that “the market is more vulnerable to a period of high volatility in the coming weeks.”
Market observers are also questioning whether the U.S. Federal Reserve’s recent interest rate cuts and its $40 billion monthly Treasury bond-buying program can provide sustainable support amid the current liquidity crunch. Lim explained that while the bond-buying program offers technical support, the Fed’s primary objective remains protecting the banking system rather than injecting the excess liquidity required to drive strong momentum in the cryptocurrency market. Seasonal liquidity constraints, such as lower demand, tax-related withdrawals, and the Fed’s cautious approach, further limit the likelihood of a sharp short-term increase in liquidity.
Other analysts, however, suggest that gradual shifts in the macroeconomic environment may alleviate these short-term pressures. Peter Chung, head of research at Bristow Research, stated that cumulative interest rate cuts and the Fed’s liquidity program are expected to create “more buying than selling pressure” throughout 2025. Ryan Yun, senior research analyst at Tiger Research, offered a measured perspective, noting that “in the short term, it’s unlikely Bitcoin will reach the $89,000 cost base for active investors.” He emphasized, however, that historically, Bitcoin tends to appreciate once economic momentum improves, even if temporary pullbacks occur immediately following policy changes.
Bitcoin has risen 2.4% over the past 24 hours and is currently trading at $92,250, according to CoinGecko, reflecting cautious optimism in a market still contending with liquidity and volatility challenges.
