Key Points
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South Korea plans to introduce spot Bitcoin ETFs this year, signaling a shift away from its historically strict crypto stance.
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Large Bitcoin holders are closing leveraged long positions, a move that has mixed implications.
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Long-term holder spending over the last 30 days is nearing a level that has historically marked major market phases.
Bitcoin market activity remained relatively calm over the past week, with volatility easing as global uncertainty continued to influence risk assets. Despite the slower pace, several important developments stood out, particularly around regulatory shifts in Asia and notable on-chain behavior from large Bitcoin holders.
South Korea Moves Toward Spot Bitcoin ETFs
South Korea emerged in the latest Bitcoin headlines after confirming plans to pursue spot Bitcoin exchange-traded funds. This marks a major shift from the country’s previously strict stance on cryptocurrency-related products.
The initiative is part of South Korea’s broader 2026 economic growth strategy. Government officials acknowledged the role of digital assets in future financial markets, signaling a more open approach toward Bitcoin adoption. Given South Korea’s position as one of Asia’s largest economies, the announcement carries meaningful weight.
If approved, spot Bitcoin ETFs could open the door to fresh institutional participation within the country. This development also reflects a wider trend of growing institutional interest in Bitcoin beyond the United States, which could support price stability and long-term demand.
Bitcoin Whales Close Long Positions: What It Could Mean
Recent data shows that large Bitcoin holders on Bitfinex have been closing leveraged long positions. At first glance, this activity may appear negative, as reduced long exposure often points to weaker short-term confidence.
However, historical patterns suggest a more complex picture. In previous cycles, whales exited leveraged longs shortly before strong upward moves. Similar behavior was observed in December 2024 and again in April 2025.
This pattern often clears excessive leverage from the market, creating conditions for healthier price movement. While short-term selling pressure remains possible, past instances show that such resets have sometimes preceded sustained rallies with fewer sharp pullbacks.
That said, historical trends do not guarantee repetition. Market participants should remain cautious, even as this behavior raises the possibility of renewed upside momentum later in January.
Long-Term Holder Spending and Market Structure
Attention has also turned to long-term holder activity. According to CryptoQuant analyst CryptoZeno, Bitcoin spending from long-term holder wallets rose sharply toward the end of 2025, with notable spikes in November.
Historically, elevated long-term holder selling has coincided with market tops. During the Q4 2025 downturn, long-term holders distributed Bitcoin at levels similar to past cycle peaks, which would typically suggest extended downside risk.
This cycle, however, shows a different dynamic. Large entities and institutional participants appear to have absorbed much of the sell pressure. While long-term holder outflows usually signal weakening demand, current market behavior suggests that institutional accumulation may be offsetting those effects.
ETF flows remain a point of concern, as net outflows have persisted for roughly three weeks. At the same time, broader macroeconomic conditions continue to limit aggressive upside moves.
Current Market Outlook
Bitcoin traded near the $90,600 level over the weekend, holding firm despite ETF outflows and macro uncertainty. The ability to maintain this range suggests underlying strength, even as short-term drivers remain mixed.
While near-term direction remains uncertain, recent developments point to a market in transition rather than decline. Regulatory progress in Asia, whale positioning, and institutional absorption of supply may shape Bitcoin’s next major move as January progresses.
