PANews reported on December 1st that, according to The Block, Bitcoin's price plummeted below $86,000 on Monday morning. Simultaneously, wallet behavior shifted, indicating that large holders slowed their accumulation pace as smaller retail wallets accelerated their buying. Analysts warn that this pattern often foreshadows increased vulnerability later in the cycle. On-chain data shows that in recent weeks, the pace of accumulation by long-term holders and large wallet groups has slowed significantly. In contrast, small wallets holding less than one Bitcoin have accelerated their buying during the recent price drop.
Timothy Misir, Head of Research at BRN, stated that the market structure is at a delicate stage, and this divergence is already evident. He said, "Whales are slowing their buying while retail wallets are increasing their holdings, which is a typical late-cycle pattern that exacerbates short-term vulnerability. This morning's sell-off is a typical liquidity and positioning event; the market is not signaling a trend reversal, but rather a stress signal." He added that short-term holders experienced a surge in losses during the sell-off, indicating a "sentiment reset" in the market. Exchange balances and stablecoin inflows suggest that the market has both buying power and potential selling liquidity.


Legal experts are concerned that transforming ESMA into the “European SEC” may hinder the licensing of crypto and fintech in the region. The European Commission’s proposal to expand the powers of the European Securities and Markets Authority (ESMA) is raising concerns about the centralization of the bloc’s licensing regime, despite signaling deeper institutional ambitions for its capital markets structure.On Thursday, the Commission published a package proposing to “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties to ESMA, Cointelegraph reported.Concerningly, the ESMA’s jurisdiction would extend to both the supervision and licensing of all European crypto and financial technology (fintech) firms, potentially leading to slower licensing regimes and hindering startup development, according to Faustine Fleuret, head of public affairs at decentralized lending protocol Morpho.Read more
