Claims that Bitcoin whales are currently undergoing a significant phase of reaccumulation have been greatly exaggerated, indicating that the overall market dynamics for this digital currency remain largely unchanged, according to on-chain analytics provided by CryptoQuant.
Julio Moreno, the head of research at CryptoQuant, cautions against the widespread belief that major holders are aggressively purchasing Bitcoin (BTC). He explains that much of the publicly available data suggesting “whale accumulation” is actually skewed by activities related to cryptocurrency exchanges rather than authentic investor behavior.
Exchanges frequently consolidate assets from numerous smaller wallets into fewer large ones for operational efficiency and regulatory compliance. This practice artificially inflates the count of wallets holding substantial balances, causing on-chain monitoring tools to mistakenly interpret these movements as whale accumulation.
Once these exchange-related distortions are removed from consideration, it becomes clear that large holders are predominantly distributing Bitcoin instead of accumulating it. Consequently, whale balances continue their downward trend. Additionally, holdings in addresses containing between 100 and 1,000 BTC are also decreasing—a pattern indicative of ongoing outflows linked to exchange-traded funds (ETFs).
This information holds considerable importance because Bitcoin whales wield significant influence over market conditions; their sizable transactions often trigger price fluctuations and periods marked by volatility. Nevertheless, since early 2024 with the introduction of US spot Bitcoin ETFs—now major custodians—the structure within this market segment has evolved considerably.
The US spot Bitcoin ETFs collectively possess nearly 1.3 million BTC units which account for approximately 6.2% of all Bitcoins in circulation.
A Positive Development: Long-Term Holders Begin Accumulating
While discussions persist regarding whether whales have started reaccumulating coins again recently, other on-chain indicators reveal a more optimistic trend among long-term holders—a group closely monitored by analysts.
Matthew Sigel from VanEck’s digital assets research team noted that over the past month long-term holders transitioned into net buyers after experiencing what he described as their largest selling episode since 2019.
This behavioral change implies a potential reduction in one key source contributing to recent selling pressure within bitcoin markets—at least temporarily.
Although bitcoin’s price has yet to show sustained upward momentum following this shift—it has managed to avoid revisiting its sub-$80K lows recorded last November—and was trading just above $90K at publication time.