Bitcoin Whales Are Buying Again as Other Investors Retreat

Bitcoin has drawn support from large holders after a period of sustained selling. Whale wallets accumulated about 53,000 coins in the past week, marking their largest buying spree since November. This activity helped stabilize prices after a steep drawdown, though the broader market remains cautious.

Institutional investors have also shown signs of stabilizing demand. US spot Bitcoin ETFs attracted $371 million in net inflows last Friday and an additional $145 million on Monday. These inflows came as Bitcoin hovered around $70,000, signaling a potential slowdown in redemptions.

Corporate buyers, including MicroStrategy, continue to add to their Bitcoin holdings. The company purchased 1,142 bitcoin for approximately $90 million, bringing its total holdings to 714,644 coins. This move underscores its long-term commitment to Bitcoin, despite current price levels being below its average acquisition cost.

Why Did Bitcoin Whales Start Buying Again?

Bitcoin whale activity has surged as the cryptocurrency faces ongoing sell pressure. Wallets holding over 1,000 Bitcoin added more than $4 billion worth of the token in the past week, reversing months of divestment. This buying appears to be a defensive move rather than a bullish signal, as large holders aim to stabilize prices amid broader uncertainty.

Large investors have been net sellers over the past year, with more than 170,000 coins leaving their wallets since mid-December. The recent accumulation may signal a pause in the downtrend rather than a reversal. Analysts caution that without broader institutional and retail support, the current rally is unlikely to be sustained.

How Are Institutional and Corporate Buyers Reacting?

Institutional demand for Bitcoin is showing signs of stabilization. Spot Bitcoin ETFs have recorded a modest inflow in recent days, though this has not yet offset the $1.9 billion in redemptions year-to-date. CoinShares noted that the deceleration in outflows historically precedes market inflection points.

Corporate buyers, however, have tempered their activity. Publicly listed companies that previously embraced Bitcoin as a reserve asset have slowed their purchases as their own share prices have come under pressure. This caution reflects broader macroeconomic concerns and the impact of Bitcoin’s volatility on corporate balance sheets.

MicroStrategy’s CEO, Michael Saylor, reaffirmed the company’s commitment to Bitcoin during a recent interview. He stated that the firm will continue purchasing Bitcoin every quarter and has no plans to sell its holdings. This stance aligns with the company’s strategy of treating Bitcoin as a long-term strategic asset.

What Do Analysts See as the Next Market Catalysts?

Analysts are watching for signs of renewed demand across both institutional and retail channels. On-chain data from Glassnode shows that the 14-day RSI has rebounded toward its lower statistical band, indicating easing sell pressure. However, the firm notes that volumes remain reactive rather than constructive, suggesting that the market is still in a defensive posture.

Retail investors remain hesitant. Many who bought Bitcoin through newly launched ETFs are now sitting on losses, making them less likely to add to their positions. At the same time, publicly listed companies have reduced their Bitcoin purchasing as broader financial pressures take precedence.

Bitcoin’s price action also highlights the mixed signals in the market. After reaching a record high in October, the token slid to around $60,000 before rebounding to $70,000. The current price remains below its October peak but has found support near key psychological levels. Further stabilization will depend on whether institutional and corporate buyers can generate enough demand to push prices higher.