Bitcoin Whales Boost Holdings as Smaller Traders Exit Amid Market Pressure

Bitcoin whales have become notably more active recently, increasing their crypto holdings as smaller traders offload their assets under pressure. The number of Bitcoin wallets holding 100 BTC or more has reached its highest point in 17 months, driven by a surge in accumulation over the past few weeks.

Blockchain analytics platform Santiment revealed on August 31 that 283 wallets crossed the 100 Bitcoin threshold during August. “With retail traders being disappointed by the recent price action, Bitcoin whales are multiplying. A net gain of 283 wallets holding at least 100 BTC was observed in just one month,” Santiment reported. The total number of such wallets now stands at 16,120—setting a new 17-month peak.

In addition, Santiment noted that “shark” wallets, which hold at least 10 BTC, have also increased their Bitcoin reserves. Collectively, wallets containing between 10 and 10,000 BTC accumulated over 133,000 Bitcoins in the past 30 days, representing a value of over $7.6 billion.

Adam Back, CEO of Blockstream and creator of Hashcash, pointed out that since Bitcoin’s price fell from above $62,000 to around $58,000 on August 28, whales have been actively purchasing. “Whales are buying 450 BTC per day, nonstop since the dip on the 28th. That’s as much as the amount of Bitcoin mined daily. If you want to sell your Bitcoin cheap, go ahead,” Back commented.

Santiment attributed the increased whale buying to smaller traders who are selling off their holdings as Bitcoin’s price fluctuates. Crypto analyst Axel Adler Jr, a contributor to CryptoQuant, speculated on September 1 that many smaller traders might be feeling the pressure to sell as Bitcoin’s price drops below their entry point. He warned that, if this trend continues, the number of traders selling at a loss could potentially double.

The Crypto Fear and Greed Index, which measures market sentiment, currently sits at 26, indicating a state of “Fear.” Throughout August, the index showed more days in the “Fear” zone than in “Greed,” with an average score of 37.

However, Vivek Sen, founder of Bitgrow Lab, suggested that the uptick in whale activity could be a positive signal for the market. Historically, large whale purchases have often preceded Bitcoin reaching new all-time highs. “The last time whales bought in bulk, Bitcoin hit a new ATH,” Sen remarked.