Large Bitcoin Holders Reach 9‑Month Low as Whales Dump More Than 80,000 BTC
The share of Bitcoin owned by “whale” and “shark” wallets (10‑10,000 BTC) slipped to its smallest level since May, signalling heightened selling pressure amid a steep price correction.
Overview
Data from on‑chain analytics firm Santiment shows that wallets holding between 10 and 10,000 bitcoins now account for about 68 % of the total Bitcoin supply, the lowest proportion observed in the past nine months. The drop follows a sell‑off of roughly 81,000 BTC in just eight days, a period that also saw Bitcoin’s price tumble from near $90,000 to $65,000, a decline of roughly 27 %. At the time of writing, the cryptocurrency is trading just under $64,800, having recovered slightly from a 24‑hour low of a little over $60,000.
Market sentiment
The sell‑off by large holders comes as broader market sentiment turns sharply bearish:
- CryptoQuant CEO Ki Young‑Ju posted that “every Bitcoin analyst is now bearish,” reflecting a consensus shift among market professionals.
- The Crypto Fear & Greed Index fell to 9 out of 100, its weakest reading since mid‑2022, when the market was reeling from the Terra collapse.
These indicators suggest that both on‑chain activity and traditional sentiment gauges are aligned in portraying a pessimistic outlook for Bitcoin in the near term.
Retail investors step in
While whales are offloading, smaller “shrimp” wallets—those holding less than 0.1 BTC—have risen to a 20‑month high. Collectively, these micro‑holders now control about 0.25 % of Bitcoin’s total supply (approximately 52,300 BTC). Santiment notes that such a divergence—large‑holder selling paired with retail accumulation—has historically preceded extended bear markets in Bitcoin.
Historical context
- Twelve‑month price performance: Bitcoin is down nearly 30 % from its peak a year ago.
- The current share of supply held by mid‑size wallets (10‑10,000 BTC) is the lowest since the late‑May rally that propelled Bitcoin back above the $100,000 mark after a three‑month slump.
Analysis
The recent on‑chain data underscores a distribution phase where institutional‑scale participants are reducing exposure. This behavior can be driven by a range of factors, including:
- Profit‑taking after the recent price run‑up – The rapid appreciation from $53,000 in August 2024 to a record‑high above $100,000 in December 2024 likely incentivized some holders to lock in gains.
- Macro‑economic headwinds – Persistent inflation, tightening monetary policy and geopolitical uncertainty have made risk‑off assets more attractive.
- Technical pressure – Bitcoin’s breach of key support zones around $65,000 has triggered stop‑loss orders and algorithmic selling in larger wallets.
Conversely, the surge in activity among micro‑holders indicates that retail demand remains resilient, possibly fuelled by a belief that Bitcoin is oversold at current levels. However, the historical pattern of large‑holder liquidation preceding extended bear runs suggests that the price may continue to face downward pressure unless new institutional inflows materialize.
Key takeaways
- Whale share contracts to 68 % of total Bitcoin supply – the smallest proportion since May 2024.
- 81,000+ BTC sold in eight days, coinciding with a 27 % price drop from the $90k‑level.
- Fear & Greed Index at 9/100, the lowest reading in four years, reflecting extreme market pessimism.
- Micro‑holder (shrimp) wallets rise to 20‑month high, now holding roughly 52,300 BTC (0.25 % of supply).
- The current on‑chain dynamic—large‑holder selling and retail buying—mirrors patterns that have historically ushered in bear cycles for Bitcoin.
As the market digests the latest distribution, analysts will be watching for any reversal in whale sentiment or fresh institutional capital that could halt the current downtrend. For now, the data points to a cautious environment where large participants are scaling back exposure while smaller investors continue to accumulate at lower price levels.
Source: https://cointelegraph.com/news/bitcoin-price-plunge-large-holders-supply-drops-santiment?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
