Bitcoin News Today: Whales Amass BTC, Market Splits Between Panic and Accumulation

Bitcoin's whale population is quietly expanding, with on-chain data indicating a growing presence of large holders in the market, even amid recent price volatility. According to analytics firm Glassnode, the number of Bitcoin wallets holding between 1,000 and 10,000 BTC reached a new high in August, with 2,000 such addresses now holding large quantities of Bitcoin [1]. These addresses, while not as massive as the so-called "mega whales" holding over 10,000 BTC, still represent substantial market influence and underscore a continued consolidation of Bitcoin supply among institutional or high-net-worth investors.

This trend aligns with broader whale activity observed over the past week, where a single large holder sold approximately 22,769 BTC over five days. The transaction, valued at around $2.59 billion, was followed by the purchase of 472,920 ETH and the opening of a significant long position in Ether [1]. This movement, while a small fraction of the total Bitcoin supply, triggered a sharp price drop and sparked speculation about the influence of whale selling on broader market sentiment. Vijay Boyapati, a noted Bitcoin enthusiast, has argued that such whale activity is not necessarily bearish. He posits that it is a natural part of Bitcoin’s monetization cycle, distributing large wealth blocks into the broader population [1].

While whales appear to be rotating positions or taking profits, smaller holders continue to accumulate. On-chain data from CryptoQuant shows that wallets holding less than 10 BTC are still adding to their Bitcoin holdings [2]. This trend, while modest in absolute terms, is a sign of retail investor confidence and continued long-term buying pressure. Conversely, the 10–100 BTC wallet segment has begun shifting to distribution, suggesting that mid-sized investors are cashing in as Bitcoin approaches psychological levels around $118,000 [2].

The current price action has also highlighted the importance of key levels, particularly the $105,000 threshold. According to CryptoQuant, this level has become a critical area of focus for the market. A sustained break below this level could trigger widespread fear among smaller investors, potentially accelerating the distribution trend and exacerbating short-term volatility [2]. CoinGlass data confirms the volatility, with over $640 million in long positions liquidated in the past 24 hours [2]. Traders are now watching closely to see if Bitcoin can stabilize above this level or if a retest of $100,000 becomes more likely.

Amid this backdrop, macroeconomic factors remain in the spotlight. The upcoming release of the July Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation measure, will be a key event. A decline in the PCE could reinforce expectations for a rate cut in September, which has already driven expectations in the futures market. The CME FedWatch Tool currently shows nearly 90% odds of a 0.25% rate cut at the September FOMC meeting [2]. However, analysts remain cautious. Trading firm Mosaic Asset has warned against overconfidence in multiple rate cuts, noting a potential shift in the Fed’s stance toward tighter inflation tolerance [2].

Nvidia’s upcoming earnings report is also expected to influence the market. A strong performance from the AI and semiconductor giant could provide a tailwind for risk assets, including Bitcoin. The broader economic environment, while still supportive of risk-on sentiment, is becoming more nuanced as investors balance expectations of monetary easing with ongoing inflationary concerns [2].

Source: [1] Bitcoin trapped between small hodlers accumulation and massive whales sales (https://www.cointribune.com/en/bitcoin-trapped-between-small-hodlers-accumulation-and-massive-whales-sales/) [2] BTC bull run over at $111K? 5 things to know in Bitcoin this week (https://cointelegraph.com/news/btc-bull-run-over-at-111k-5-things-bitcoin-this-week)