Bitcoin’s plunge last week triggered one of the largest dip buying markets in this cycle, with on-chain data and ETF capital flows showing a rare divergence.

Data show that on February 6, a total of 66,940 Bitcoins flowed into addresses, which was approximately US$4.7 billion based on a price of nearly US$70,000 at the time. Many analysts said this was the largest single-day inflow in the current cycle.

Cumulative addresses are generally defined as wallets that receive Bitcoin but whose transaction patterns do not match daily spending. Such large inflows are seen as a signal for long-term holders to absorb supply, which the market calls "whales buying on dips."

However, it should be noted that capital inflows may reflect custody restructuring rather than new buying intentions. Analysts usually regard a single-day peak as the starting point, and continuous multi-day inflows are more meaningful.

In addition, the actions of two well-known buyers are particularly eye-catching.

The listed company Strategy purchased 1,142 Bitcoins at an average price of approximately US$78,815 between February 2 and 8, at a cost of approximately US$90 million.

Binance SAFU Fund (User Protection Reserve Fund) purchased an additional 4,225 Bitcoins on February 9, worth approximately US$300 million, with a total holding of 10,455 Bitcoins.

However, the market shows clear differentiation: While on-chain funds are being raised, ETFs continue to experience redemptions.

The CoinShares report shows that fund outflows from digital asset investment products slowed to $187 million last week and assets under management fell to $129.8 billion (the lowest since March 2025), but ETP trading volume hit a record of $63.1 billion.

Bitcoin became the main source of negative sentiment, with an outflow of US$264 million a week, and the US spot Bitcoin ETF had a net outflow of more than US$331 million that week.

This differentiation means that while cryptocurrencies are flowing into long-term holding wallets, the regulated products of service institutions continue to face redemption pressure, and the market has evolved into a tug-of-war between spot hoarding and financial product sales.

We need to pay attention to two directions in the future:

The first is whether the accumulated capital inflows continue. A single-day surge may be just a relocation after liquidation. Sustained high levels may indicate a structural tightening of liquidity;

The second is whether ETF capital flows have stabilized. The current outflows have slowed but have not yet reversed.

Bitcoin remains highly correlated with overall risk sentiment, and the plunge has been attributed to other market moves and a sell-off in tech stocks, leaving it trading like a high-beta liquid asset even as long-term holders quietly add to their positions.

The next direction of the market will depend on whether it can move from "capitulation" to "stability" rather than a single transaction by a single buyer.