Ethereum Accumulation Surges While U.S. Politics Stir Market Uncertainty

A new CryptoQuant report highlights a growing divergence between long-term Ethereum holders and short-term Bitcoin buyers, with significant accumulation behavior unfolding in both markets amid increasing political and economic tension in the U.S.

According to on-chain data, Ethereum has seen a notable uptick in long-term accumulation activity throughout June. During a period of price consolidation, significant buying pressure emerged from addresses classified as long-term holders.

The chart shared by CryptoQuant shows a clear divergence: while ETH price moved sideways, accumulation volume spiked—often a precursor to a breakout move.

This behavior reflects confidence from experienced investors who tend to buy during periods of uncertainty, when retail activity is subdued.

Bitcoin: Short-Term Holders Jump In

Meanwhile, Bitcoin is seeing an opposite trend. CryptoQuant’s Short-Term Holder (STH) Net Position Realized Cap jumped from -$49 billion to over $5 billion in recent days. This aggressive rise indicates a wave of new entrants—primarily retail traders—buying Bitcoin at elevated levels.

Historically, such behavior has signaled heightened market euphoria, and has often coincided with local tops. The combination of surging short-term interest and long-term ETH accumulation suggests a possible market inflection point ahead.

Binance ETH Inflows Raise Caution

Adding to the complexity, Ethereum inflows to Binance have continued for five consecutive days, a pattern that often signals rising sell-side pressure. Traders moving ETH to centralized exchanges may be preparing to take profits or rebalance portfolios—especially after weeks of sideways price action.

U.S. Politics May Drive Volatility Ahead

The on-chain signals emerge just as political developments heat up in the United States. President Trump recently urged the Senate to pass the “One Big Beautiful Bill,” a sweeping package of tax cuts and military spending proposals. The legislation includes major tax relief for seniors and workers and is positioned as a patriotic win ahead of the July 4 holiday.

However, Elon Musk voiced concern about the bill’s long-term implications. He warned that unfunded tax cuts could swell the U.S. deficit and pose structural risks to strategic industries. Economists echo similar concerns, noting that without matching spending cuts, the bill could fuel debt accumulation and future inflationary pressure.

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Market Outlook: Divergence May Resolve Soon

In the face of political crosswinds and mixed on-chain signals, investors appear divided. Ethereum’s long-term holders are showing conviction, while Bitcoin’s retail surge suggests fear of missing out is returning. Coupled with inflows to Binance and macroeconomic uncertainty, the next few weeks could bring significant price action across crypto markets.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.