CMC News

$BTC Whales Accumulate $5.3B While Retail Traders Exit Positions

Large #crypto holders have purchased 56,227 $BTC worth approximately $5.3 billion since mid-December, while smaller investors took profits, creating conditions that typically precede upward price movement. Santiment reported Monday that whale and shark wallets now control significantly more Bitcoin than they did three weeks ago, marking a notable shift in market positioning.

The #on-chain analytics platform defines whales and sharks as addresses holding between 10 and 10,000 $BTC, while retail traders maintain wallets with less than 0.01 Bitcoin. Santiment noted that crypto markets historically move in the direction chosen by large stakeholders rather than following retail investor behavior. This dynamic has played out consistently across multiple market cycles.

The accumulation phase began at #Bitcoin's local bottom in mid-December, with whale wallets steadily increasing their holdings even as prices remained relatively flat. Santiment characterized this divergence between wallet growth and price action as #bullish, suggesting that large holders anticipated future gains despite sideways trading. The pattern intensified over the past 24 hours as retail traders began exiting positions.

Retail investors appear to believe the current rally represents a bull trap rather than sustainable upward momentum. This skepticism has led smaller holders to sell into strength, taking profits accumulated during earlier phases. Santiment stated that this combination of whale accumulation and retail selling creates a higher probability than usual for continued #marketcap growth across crypto markets.