China’s crypto pivot could help Bitcoin shake off market FUD – Here’s how!

Market Context## Bitcoin was trading near $86,200, with whales at roughly 39% unrealized profit and sharks at nearly 28% based on their respective cost basis. However, the risk of profit-taking and a new wave of selling pressure is clearly back, as BTC now down to $83k.## Accumulation Signals## Santiment reported continued accumulation among wallets holding between 10 and 10,000 BTC, with these wallets adding 86,702 BTC over three weeks. This increase suggested that larger holders continued building exposure despite Bitcoin's recent weakness.## Potential Catalyst## Joseph Chee's comments on China potentially allowing greater crypto activity could provide a fresh catalyst for investors to maintain their Bitcoin exposure. His comments described a possibility, rather than an announced policy change, and pointed to Hong Kong as a testing ground for crypto activity.## Market Outflows## CryptoQuant data showed more than $3.3 billion worth of BTC leaving Binance over approximately two weeks. Weekly Outflows also reached their highest levels since 2023. If this trend continues, China's potential crypto pivot could give Bitcoin holders another reason to stay put.## Conclusion## The recent dip in Bitcoin's Fear and Greed Index could be temporary, as on-chain signals continue to support HODLing through the current market FUD. With whale accumulation and exchange outflows indicating more BTC moving into long-term hands, a potential supercycle could support Bitcoin's price. Therefore, China's potential crypto pivot could help Bitcoin shake off market FUD and maintain HODL sentiment.