[DigitalToday reporter Jinju Hong] Accumulation by large investors has continued in the bitcoin (BTC), ethereum (ETH) and XRP markets, prompting an analysis that the cryptocurrency market is entering the final phase of a bear market. It said the bottom has not yet been confirmed and there is still room for further declines.

On Aug. 6 (local time), blockchain media outlet CoinPost reported that on-chain analytics firm CryptoQuant said in a recent market report that whale accumulation is increasing in bitcoin, ethereum and XRP. The report said the trend resembles patterns repeatedly seen in the final stage of past bear markets.

CryptoQuant focused on the point that large holders are steadily absorbing supply even as prices fall. When whales with long-term investment tendencies accumulate, circulating supply generally declines, and when demand later recovers, it often lays the groundwork for a rebound in prices, it said.

In bitcoin, holdings in whale wallets excluding exchanges and mining pools were tallied as rising steadily this year to about 3.06 million BTC after hitting a low of about 2.87 million BTC in December last year. It also found that large investors were active in bargain buying last June, when bitcoin fell below $60,000. Current holdings, however, remain below about 3.23 million BTC recorded during the 2025 bull market.

CryptoQuant called rising whale balances in a down market "the clearest signal showing smart money’s moves." When long-term holders absorb market selling, supply pressure eases, and this has been repeatedly observed ahead of market bottoms in the past, it said.

A similar trend was also seen in the XRP market. The average spot market order size remains centered on very large investors, and whale accumulation is continuing even after the price fell from about $2.4 early this year to around $1 now, it said.

Still, it said it is difficult to view the market as being in an aggressive buying phase. The 90-day taker cumulative volume delta (CVD) remains at a neutral level. CryptoQuant said the combination of large limit orders and neutral CVD indicates a "quiet supply absorption and bottom-forming process." It described this as a stage of absorbing selling supply rather than actively pushing prices higher.

In ethereum, moves by investor type diverged more clearly. Holdings of mid-sized investors with 1,000 to 10,000 ETH fell to about 12.9 million ETH from about 15.6 million ETH in January. By contrast, holdings of large investors with 10,000 to 100,000 ETH rose to about 19.6 million ETH from about 14.0 million ETH in mid-2025, reaching a record high. Accumulation by very large wallets holding at least 100,000 ETH was particularly pronounced, it said.

The trend shows a structure in which large investors are absorbing supply sold by individuals or smaller investors. CryptoQuant said the more holdings concentrate among long-term investors, the more circulating supply declines, potentially creating conditions favorable for price gains when demand recovers.

It also noted that it is too early to conclude the market has fully passed its bottom. In past bear markets, bitcoin often formed a final bottom after falling to its realized price level, it said. Bitcoin and XRP are still slightly above their realized prices, while only ethereum is trading below that level, it added.

CryptoQuant said the current whale accumulation is likely a typical feature of the later part of a bear market. It added that it cannot rule out another drop before the market confirms a final bottom.