Bitcoin Whales and Sharks Return as Accumulation Resumes

• Large Bitcoin holders have added approximately 5,000 BTC after weeks of selling, signaling renewed confidence in the market.
• The Bitcoin Fear and Greed Index has dropped to 20, historically a level where whales accumulate discounted BTC.
• Despite ETF inflows and corporate acquisitions, wallets with over 1,000 BTC continue to cash out, with 100+ large wallets liquidating holdings in early 2024.

Bitcoin’s price movements have once again caught the attention of market players, as whale and shark wallets return to accumulation mode following BTC’s dip to $82,000. Despite this renewed buying activity, Bitcoin’s price has yet to reflect a strong rebound, indicating a cautious approach from investors. However, wallets holding over 10 BTC have pivoted back to buying, signaling a potential shift in market sentiment.

Whales and Sharks Reverse Course After February Selloff

According to on-chain data from Santiment, large Bitcoin holders offloaded significant portions of their holdings after February 20, contributing to a prolonged price decline. The selling trend extended into early March, amplifying Bitcoin’s weakness. However, recent activity suggests accumulation wallets have resumed purchases, sparking optimism that the current bull cycle may continue.

Over the past few days, wallets categorized as whale or shark balances have added approximately 5,000 BTC, reinforcing the notion that seasoned investors are once again buying the dip. Currently, more than 152,000 addresses hold over 10 BTC, with subtle but notable changes in their accumulation patterns.

Despite renewed buying interest from large-scale investors, Bitcoin continues to face price pressure. The flagship cryptocurrency slid to $81,871.27 during Monday’s European trading session, underscoring persistent selling pressure and long liquidation events. Spot buying alone has not been enough to counteract these trends.

The Bitcoin Fear and Greed Index has fallen to 20 points, signaling extreme fear across the market. Historically, such conditions have triggered increased accumulation from whales, who capitalize on discounted prices to strengthen their positions.

Fresh Bitcoin Investors Accumulate as Whales Exit

On-chain data reveals a clear divide between long-term Bitcoin holders and newer market participants. Wallets that have existed for more than three months are either holding or gradually increasing their BTC balances. In contrast, wallets created in the past month remain the most active sellers, indicating a recent wave of capitulation.

Notably, addresses aged between one to three months now hold 9.36% of the total BTC supply, showcasing a fresh wave of buyers entering the market. This trend suggests that older whales from the previous bull cycle are taking profits, while newer investors are beginning to accumulate.

Overall, Bitcoin’s demand has remained subdued, with no definitive signs of a trend reversal. The recent buying activity from whales and Ethereum investors may be an early indication of a shift, but historically, whales prefer to accumulate only after retail investors have completely exited the market.

Bitcoin’s demand index has dropped to levels last seen in September 2024. Additionally, BTC price action seems to have moved beyond narratives surrounding the U.S. elections and potential macroeconomic influences. The demand index, currently at 31.50 points, reflects a decline from its November 2024 peak.

Bitcoin Whales Cash Out as 100+ Wallets Sell in 2024

While the resurgence of whale and shark accumulation is notable, it has yet to offset the broader trend of large Bitcoin holders cashing out. Wallets with over 1,000 BTC have been the most aggressive sellers in 2024. Data shows that at least 100 such wallets liquidated part of their holdings between February and March, leaving only 2,054 wallets holding over 1,000 BTC as of March 10.

Even institutional demand via ETF inflows and corporate acquisitions has only partially countered these large-scale sell-offs. While Bitcoin maximalists remain bullish on a significant long-term appreciation, mid-term whales continue to lock in profits along the way.

Miners have been relatively cautious in selling their Bitcoin holdings. Currently, reserves sit at 1.92 million BTC, with only limited selling activity. The Miner Position Index (MPI) stands at 0.06 points, indicating that miners are primarily in accumulation mode rather than offloading coins.

However, historical trends suggest that miners strategically sell during peak bull market phases to maximize profits. With Bitcoin’s supply becoming increasingly scarce, mining operations are focused on accumulating BTC to fund expansion and infrastructure development for the next market cycle.

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