Whales and Sharks Feast on Retail Fears as Bitcoin Hovers Near $96k

Bitcoin's whales and sharks are taking advantage of the oversensitivity of retail traders in the current market conditions. Despite the recent volatility and market turbulence, Bitcoin has shown remarkable resilience, with its price repeatedly approaching $96k. However, the uncertainty in the U.S. economy is affecting retail traders, who are highly sensitive to news and macroeconomic developments. In contrast, whales tend to view market dips as opportunities for accumulation.

According to Santiment's analysis, whales and sharks are benefiting from retail traders' fear of a market collapse. Retail traders often assume that history repeats itself, leading to fear of a major drop similar to the one experienced in 2022. This oversensitivity to inflation and interest rate hikes allows whales and sharks to accumulate coins with little market resistance. Every time the price retraces, whales and sharks enter the market to buy the dip, while retailers avoid the market.

In the 2022 bear market, whales and sharks behaved similarly to how retail traders are currently behaving. However, over the past six months, wallets holding more than 10 BTC have seen exponential growth, despite uncertain economic conditions. These holders are not sensitive to U.S. inflation data or Fed rate cuts and expect Bitcoin markets to evolve independently. This optimism is evidenced by the fact that whale capital inflows have continually outpaced outflows over the past week, with large holders' netflows remaining positive.

The declining fund flow ratio to exchanges further validates the capital inflows by large holders, including institutions. This healthy market structure is confirmed by the rising scarcity of Bitcoin, as indicated by the spike in its stock-to-flow ratio. While retail traders are taking a step back, large holders are not, and whales are overly active, anticipating a price rebound soon. They are using this opportunity to scoop Bitcoin from weaker hands. If the prevailing sentiment among whales holds, Bitcoin could recover and reclaim the $99,600 level. Conversely, if retailers continue to sell, BTC will continue to trade sideways until good news comes along to restore their confidence.