ON-CHAIN SIGNAL: Why Panic Selling Met Strong Buy-Side Support.
This week acted as a stress test for the market. As retail participants sold into fear, larger players absorbed supply, keeping price action balanced. Here’s what stood out:
▪️ The Supply Shock: Trend Research sold 170,033 $ETH ($322.5M), increasing short-term selling pressure alongside concerns tied to China’s ban on yuan-backed stablecoins.
▪️ The Demand Wall: MicroStrategy, despite a $12.6B paper loss, reaffirmed that it is NOT selling its $BTC , reinforcing confidence and providing a psychological liquidity floor.
▪️ The Rotation: Capital shifted toward perceived safety. The recovery was driven by major assets, signaling renewed focus on deep-liquidity markets like $BTC and $ETH.
Verdict: Neutral. Market structure remained intact under heavy sell pressure, though institutional risk has not fully cleared. Capital may continue concentrating in established, high-liquidity assets.
