Key Points
- The system automatically converts sales into Bitcoin and allows merchants to hold or withdraw BTC through Square’s dashboard, reinforcing Block’s long-standing commitment to Bitcoin as a functional currency.
- Bitcoin spot ETFs have recorded seven consecutive days of inflows, totaling over $5.3 billion, pushing total ETF assets under management to $164.9 billion.
- On-chain data shows “Shark wallets” (holding 100–1,000 BTC) now control more than 5.1 million BTC, reaching an all-time high and signaling accumulation by mid-tier investors since mid-Q2 2025.
- Despite short-term price correction of over 2% due to profit-taking, technical indicators like RSI near 60 suggest a healthy consolidation phase within a broader bullish trend.
Square’s Strategic Leap into Bitcoin Commerce
Square’s latest announcement represents far more than a product update—it signals a deliberate pivot toward embedding Bitcoin into the daily operations of small enterprises. The newly unveiled Bitcoin suite, introduced on October 8, equips merchants with the ability to accept BTC directly at the point of sale without incurring processing fees for an entire year. This incentive lowers the barrier to entry for businesses that may have previously viewed cryptocurrency integration as complex or cost-prohibitive. More importantly, the system streamlines the entire transaction lifecycle: sales settle in Bitcoin automatically, and users can choose to retain their holdings or transfer them out via an intuitive dashboard interface.
This development aligns with a vision Jack Dorsey has championed for years—one where Bitcoin functions not merely as a speculative instrument but as genuine working capital. Long before this rollout, Block (formerly Square) laid groundwork through Cash App’s early Bitcoin integration, positioning itself as a bridge between traditional finance and decentralized money. Now, by weaving BTC into core business tools like payment processing and balance management, Square aims to normalize Bitcoin as a medium of exchange in real-world commerce. The goal is clear: shift perception from “digital gold” to practical currency.
Institutional Momentum Fuels Market Confidence
Parallel to Square’s commercial push, institutional engagement with Bitcoin continues to accelerate at an unprecedented pace. Recent data reveals that spot Bitcoin ETFs have attracted inflows for seven straight days, amassing over $5.3 billion in fresh capital during that window alone. This sustained demand has elevated total assets under management across all Bitcoin ETFs to $164.9 billion—a figure that underscores deepening trust among large-scale investors. Unlike earlier cycles driven largely by retail enthusiasm, today’s growth reflects structured, long-term allocation strategies from pension funds, asset managers, and corporate treasuries.
The convergence of Square’s merchant-focused infrastructure and robust ETF activity paints a compelling picture of Bitcoin’s evolving role. No longer confined to niche trading platforms or volatile price swings, BTC now operates within regulated financial products and everyday business workflows. This dual-track adoption—simultaneously top-down through institutions and bottom-up through small businesses—creates a reinforcing feedback loop. As more capital flows into ETFs, liquidity improves, volatility decreases, and usability increases, making tools like Square’s Bitcoin suite even more attractive to mainstream operators.
The Quiet Accumulation by Mid-Tier Players
Beneath the headlines of ETF inflows and corporate integrations lies another critical trend: the steady accumulation of Bitcoin by mid-tier holders. On-chain analytics show that addresses containing between 100 and 1,000 BTC—often referred to as “Shark wallets”—now hold over 5.1 million BTC, marking an all-time high. This cohort typically includes crypto-native funds, family offices, and smaller institutional players who operate with strategic patience rather than speculative frenzy. Their buying activity has been consistent since mid-second quarter of 2025, suggesting a coordinated belief in Bitcoin’s long-term value proposition.
Historically, such accumulation phases have served as precursors to major market expansions. A similar pattern emerged in the months leading up to Bitcoin’s 2020–2021 bull run, when mid-sized entities quietly built positions before broader market recognition. Today’s behavior mirrors that playbook, indicating that sophisticated actors view current price levels as favorable entry points. Unlike retail traders who may react impulsively to news cycles, these entities prioritize fundamentals—network security, adoption metrics, and macroeconomic tailwinds—making their sustained accumulation a strong signal of underlying market health.
Navigating Short-Term Volatility Within a Bullish Framework
Despite the overwhelmingly positive structural developments, Bitcoin’s price has dipped more than 2% in the past 24 hours. This pullback stems largely from profit-taking following recent gains, a natural phenomenon in any maturing asset class. Concurrently, derivatives markets show rising open interest and elevated funding rates, which can indicate short-term overheating as leveraged positions crowd the market. Such conditions often precede brief corrections as traders rebalance risk exposure.
However, technical indicators suggest this dip may be more of a pause than a reversal. The Relative Strength Index hovers around 60—well below overbought territory—pointing to a healthy consolidation phase rather than exhaustion. In the context of deepening adoption across both institutional and retail layers, this temporary cooling could actually strengthen the foundation for the next leg up. Market maturity means volatility persists, but its impact diminishes as utility and infrastructure expand. The current environment reflects not fragility, but resilience in the face of growing complexity.
Conclusion
Square’s integration of Bitcoin into its merchant ecosystem marks a pivotal moment in the asset’s journey from speculative novelty to functional economic tool. Combined with record ETF inflows and strategic accumulation by mid-tier investors, these developments illustrate a multi-layered adoption curve gaining momentum across commercial, institutional, and on-chain dimensions. While short-term price action may fluctuate due to market mechanics, the underlying trajectory points toward greater utility, broader acceptance, and deeper integration into the global financial fabric. Bitcoin is no longer just an investment—it is becoming infrastructure.
