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Bitcoin long-term holders have stopped selling for the first time since July, signaling a potential shift in market dynamics as institutional adoption accelerates heading into 2026. Meanwhile, Cardano founder Charles Hoskinson outlined plans for the blockchain's Midnight sidechain to expand DeFi capabilities, while Grayscale filed for the first US exchange-traded product for Bittensor's TAO token.
Key Points
- Bitcoin whales ceased selling activity, marking exhaustion of selling pressure that historically precedes 50% price increases
- Major institutions including Harvard's $50 billion endowment and Middle East sovereign wealth funds have established significant Bitcoin positions
- Cardano's Midnight sidechain aims to 10x the ecosystem's DeFi capabilities through privacy-focused applications
- Grayscale filed for the first US Bittensor ETP, potentially bringing decentralized AI tokens to regulated markets
- Ethereum shows institutional accumulation while retail investors continue selling
Bitcoin Whale Activity Signals Market Shift
Data shows Bitcoin's long-term holder supply net position change has turned neutral over the past 30 days, ending months of consistent selling pressure. This pattern historically coincides with significant price movements, as selling exhaustion typically precedes major rallies.
The behavioral shift comes amid unprecedented institutional adoption. Harvard University's $50 billion endowment now lists Bitcoin as its largest publicly reportable position, while Middle East sovereign wealth funds have allocated substantial portions of their portfolios to the cryptocurrency.
Vanguard, managing $10 trillion in client assets, reversed its previous stance and now provides access to Bitcoin ETFs. Bank of America Merrill Lynch recently recommended 1-4% Bitcoin and cryptocurrency allocations in client portfolios, marking a significant shift in traditional finance's approach to digital assets.
Cardano Positions for DeFi Expansion
Cardano founder Charles Hoskinson explained how the upcoming Midnight sidechain could dramatically expand the network's decentralized finance ecosystem. The privacy-focused partner chain aims to attract users from established platforms like Ethereum and Solana through differentiated offerings rather than marginal improvements.
People say, "Oh, well, won't this kill Cardano?" No, this is what's going to 10x the Cardano DeFi ecosystem.
Hoskinson emphasized that Midnight will enable hybrid applications offering privacy features unavailable on other networks. These could include private prediction markets, private decentralized exchanges, and private stablecoins. The strategy targets Bitcoin DeFi users who may prefer privacy-focused trading platforms over transparent alternatives.
Targeting Bitcoin DeFi Markets
The Cardano founder suggested that Bitcoin traders might gravitate toward private DEXs as Bitcoin DeFi develops, potentially generating billions in daily trading volume. This positioning attempts to capture market share as the Bitcoin ecosystem expands beyond simple holdings into more complex financial applications.
Institutional Ethereum Accumulation Continues
While retail investors sell Ethereum positions, large institutional holders continue accumulating the second-largest cryptocurrency. This divergence reflects different investment approaches, with retail investors typically selling during market uncertainty while institutions maintain longer-term perspectives.
The pattern emerges despite 2024 being the second-worst year on record for Ethereum and altcoins, contradicting narratives of a broad cryptocurrency bull market. However, analysts suggest prolonged suppression of altcoin prices may set up significant rebounds as selling pressure exhausts.
Market observers expect the combination of institutional accumulation, regulatory clarity, and improving macroeconomic conditions to support cryptocurrency prices in 2026, with Bitcoin's current whale behavior providing an early indicator of potential market direction changes.
