With the market currently digesting the largest downtrend of the cycle, indecision amongst digital asset investors remains apparent. However, below the surface, a distinct return to HODLing and accumulation appears to be underway.

The Bitcoin market is currently experiencing a period of stagnation, with both demand and supply sides showing signs of inactivity. The market is characterized by minimal capital inflows and outflows, as the stagnant Realized Cap indicates.

In the wake of the Federal Reserve's 0.5% interest rate cut, Bitcoin has reclaimed the Short-Term Holder cost basis of ~$61.9k. This rally could achieve technical significance if the price also holds above the 200-day moving average at $63.9k.

A notable divergence between supply and demand is emerging, with the market being range-bound for over seven months. With low volumes across on-chain and futures markets and a HODLer-dominated environment, the scene is set for heightened volatility in the…