Bitcoin is repeatedly testing around the $90,000 mark, and the entire market's fear sentiment is thick enough to almost solidify. Interestingly, institutions on Wall Street are secretly accumulating behind the scenes.

Industry insiders have openly stated that the Federal Reserve's interest rate movements next year will be the main focus of the crypto market. Looking back at 2025, the Federal Reserve has already cut rates three times, with the most recent December meeting lowering rates by 25 basis points, bringing the current rate range to 3.5%-3.75%. However, according to the dot plot, there may only be one rate cut in 2026. Once this news broke, the market immediately became a bit restless.

Numerically, it’s quite alarming—Bitcoin has fallen nearly 30% from its October all-time high, and the Crypto Fear & Greed Index, which measures overall sentiment, has been stuck in the "Extreme Fear" zone since mid-December, with a score of only 23.

But there is an interesting paradox here. On one hand, Bitcoin is still hovering above $90,000, and market sentiment is extremely poor. On the other hand, on-chain data reveals another signal: short-term holders are selling off in large quantities, with losses reaching $4.5 billion. This figure hasn't appeared since the Yen arbitrage blow-up in 2024.

What does this phenomenon usually indicate? Washout. And washouts are often a precursor to bottom signals. The Bitcoin reserves on exchanges are also continuously flowing out and have fallen to the lowest point since 2018. This suggests that the true holders are not selling but accumulating.