What happened?
Bitcoin pulled back about 16% from recent highs and is trading near $111,700 while ARK Invest says on-chain fundamentals stayed strong through Q3 2025. Network security and miner revenue rose, transaction activity increased, and more coins became illiquid, showing stronger holder conviction. At the same time institutional accumulation via ETFs and corporate treasuries climbed to record levels, tightening available supply and setting up potential volatility.
Who does this affect?
Retail and swing traders face near-term trading opportunities and risks, with ARK flagging a buy-the-dip zone around $108k and clear stop levels below $107.5k. Institutional players, including spot ETFs and public companies holding Bitcoin, are major market drivers because they now control a meaningful share of supply. Miners and on-chain service providers benefit from higher fees and security, while macro-focused investors will watch Fed moves since easier conditions could push more capital into risk assets like BTC.
Why does this matter?
Tighter institutional ownership and recovering on-chain demand can amplify price moves and make new cycle highs more likely if buying persists, while subdued leverage lowers the chance of a blowoff crash. A dovish macro shift would improve liquidity and investor appetite for risk, helping Bitcoin, but high supply density near current prices means sharp moves are still likely. Technically, defending the $108k support is key—holding it points toward $124k–$126k targets, while a breakdown could expose $103k–$98k and change market positioning and liquidity flows.