Retail Bitcoin investors are increasing their accumulation efforts at an unprecedented rate, acquiring supply at a pace 72% higher than the average of the past year. According to data from Glassnode, wallets with less than 1 BTC, commonly known as “shrimps”, have been acquiring 10,627 BTC per day since mid-December, significantly higher than the daily average of 6,177 BTC from the past year. This surge in accumulation is a notable shift from November 2024, when small holders were selling off Bitcoin as prices surpassed $100,000.
On the other hand, whale investors holding over 1,000 BTC have been taking the opposite approach. They have been offloading Bitcoin to exchanges at a staggering rate of 32,509 BTC per day during the same period. Glassnode reports that this sell-side pressure is nearly nine times higher than their yearly average. The diverging behavior of smaller and larger holders indicates a redistribution of Bitcoin ownership. While retail investors show long-term conviction in the value of Bitcoin through consistent accumulation, whale sell-offs create counterpressure, leading to increased volatility as their selling activity outweighs buying momentum.
This tug-of-war between Bitcoin holders is reflected in Bitcoin’s price floor. Bitcoin reached the unprecedented six-figure range in the first week of December 2024, peaking at $108,268, but closing the year below $100,000. In January, the asset reached a new peak near $110,000 but has since dropped to $91,242 and is struggling to sustain an uptrend. Market participants have become fearful, as indicated by the drop in the market greed index to a score of 35, entering the fear threshold.
On the other hand, a recent analysis by Santiment suggests that retail sentiment towards Bitcoin has strengthened. Many investors are returning to Bitcoin as a relative safe haven, especially as altcoins have experienced significant price dips. The analysis also notes growing optimism that Trump’s pro-crypto policies will eventually generate bullish momentum for Bitcoin, but cautions that a cooling of this optimism would be healthier.
In a separate report, Santiment reveals that some Bitcoin whales are taking advantage of the current volatility by accumulating more coins. In February, there was an increase of 135 wallets holding 100+ BTC, while the number of addresses holding less than 100 BTC decreased by around 138,000. Santiment suggests that this shift in market dynamics could create an ideal setup for long-term growth, even if it takes a few weeks or months for the positive effects of the accumulations to be fully realized.