Bitcoin Whales Accumulate 15-Day Peak, Smaller Holders Sell

Bitcoin whales, defined as entities holding over 10,000 BTC, have reached a peak accumulation score of approximately 1.0 earlier this month, indicating a period of intense buying activity. This score, as highlighted by Glassnode, reflects a significant deviation from the behavior of smaller holders, who are increasingly shifting towards selling their holdings.
Glassnode's latest post on X (formerly Twitter) noted that whales holding more than 10,000 BTC briefly achieved a perfect accumulation score of around 1.0 at the beginning of the month. This score represented a 15-day period of heightened purchasing activity. Although the score subsequently eased to around 0.65, it still indicated a steady accumulation trend among large holders.
In contrast, smaller Bitcoin holders, those with holdings between less than 1 BTC and 100 BTC, have been more inclined towards distribution. On-chain data revealed that these cohorts have significantly increased their selling activity, with accumulation scores trending down to between 0.1 and 0.2. This divergence in behavior suggests that larger players are still accumulating Bitcoin, while smaller holders are selling, reflecting a split in market sentiment.
The growing gap between the actions of large and small holders is indicative of differing market sentiments. Whales appear to be betting on Bitcoin’s long-term growth, while smaller holders may be more cautious or reactive, choosing to liquidate their positions as a hedge against potential market downturns. This contrasting strategy comes amid heightened geopolitical tensions and trade war concerns, which some analysts believe will drive Bitcoin’s appeal as a hedge.
Industry expert Will Clemente recently commented on the broader implications, stating that the current conditions are sowing the seeds for global accumulation of BTC as a hedge against money supply and de-globalization. He noted that these allocations won’t happen overnight but are in line with Bitcoin’s original purpose.
Despite the long-term optimism, macroeconomic conditions have weighed heavily on BTC, causing it to drop below $80,000. However, Bitcoin saw modest gains of 5.0% over the past day, trading at $79,454 at the time of writing. The price dip has led to significant unrealized losses for public companies holding Bitcoin reserves, with many now seeing their holdings valued below their acquisition costs. Some companies, like Strategy, have even paused their Bitcoin purchases, reflecting caution in the face of market uncertainty.
Data from CryptoQuant disclosed that 25.8% of the total Bitcoin supply is currently in loss. While this might seem alarming, it is not unprecedented. Similar scenarios have occurred throughout 2024, where a substantial portion of Bitcoin was also held at a loss. For instance, in January 2024, 24.1% of the circulating Bitcoin was underwater, and in September, that figure rose to 29.9%. These fluctuations show that periods of Bitcoin being held at a loss are not unusual and are part of the market’s cyclical nature, where price corrections affect a significant share of the supply.

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