Bitcoin Whales Resume Accumulation as Price Hovers Near $109,000

Long-term Bitcoin wallets, which have been in a state of distribution for an extended period, have recently resumed accumulation. This trend is particularly evident among wallets holding between 10,000 to 100,000 BTC, indicating a shift in the market dynamics. Additionally, wallets with over 1,000 BTC have also entered a strong accumulation phase, showing confidence as the price of Bitcoin hovers near $109,000. This accumulation by large holders, or 'whales,' suggests a tightening supply as fewer coins are available for trading.

The resurgence in accumulation by long-term holders signals a potential shift in market sentiment, with institutional adoption playing a significant role in this trend. The price of Bitcoin has been trading directionless above $100,000 for over 50 days, which has eroded the call bias in long-term options. Risk reversals derived from options expiring in June next year are nearly zero, indicating that calls and puts are trading at similar levels. Historically, long-term risk reversals have tended to be positive, indicating a bias for calls. This shift in risk reversal could be due to continued institutional structural flows, such as selling calls and buying protective puts.

Analysts have noted that consistent purchases by companies are failing to offset the general decline in spot demand for BTC. Blockchain analysis has indicated that long-term holding wallets are taking profits, which could be contributing to the stagnation in Bitcoin's price. The cultural relevance of crypto is growing, with mainstream attention from artists and entrepreneurs filtering through to investor confidence over time. This trend is evident in the recent name-dropping of Bitcoin by rapper Drake and the formation of the America Party by Elon Musk, which embraces BTC.

According to data visualized by Bitcoin Magazine Pro, this uptick follows several years of steady distribution by long-term holders who had previously been taking profits during Bitcoin’s price appreciation. The trend of long-term holders reducing their stake is common in bull markets. As prices surge, investors with sizable gains accumulated over the years often decide to lock in profits. This behavior leads to a natural drop in the share of BTC held by older wallets — particularly those in the one-to-five-year range. Since 2020, this group has gradually relinquished control of their coins, adding to the available market supply.

However, recent data suggests that this dynamic is starting to change. The chart shows a notable reversal in the HODL wave of 1y-5y wallets, indicating that fewer of these coins are being moved or sold. Instead, more coins are aging into this category, which may signal growing conviction among medium-term holders that Bitcoin’s price has room for further growth — or at least that it’s worth holding onto. This renewed accumulation may reflect broader market sentiment, where investors are increasingly willing to commit to longer holding periods despite high valuations. With Bitcoin still trading near all-time highs, such behavior suggests faith in the asset’s long-term potential or caution over missing out on future gains.

The chart also highlights a historical pattern: during past cycles, the HODL wave for 1y-5y wallets tended to bottom out and reverse before major market shifts. If this pattern holds, the current uptick could foreshadow a cooling-off period in distribution and a potential foundation for future upward momentum. Ultimately, while it’s too early to confirm a complete trend reversal, the increase in long-term holding suggests a maturing investor base and renewed confidence in Bitcoin’s future — a development that could have far-reaching implications for market dynamics in the coming months.