Bitcoin Whales Show No Massive Accumulation Signs

Bitcoin Whales Do Not Accumulate Massive Volumes

According to blockchain data from CryptoQuant, the speculation surrounding massive reaccumulation of Bitcoin by whales is significantly exaggerated. Julio Moreno, head of the research department at CryptoQuant, emphasizes that the popular narrative suggesting large holders are aggressively buying Bitcoin (BTC) is misleading.

Exchange-related activities distort data regarding "whale accumulation." These platforms frequently consolidate funds from multiple smaller wallets into larger ones for operational and regulatory reasons. This process artificially inflates the number of wallets holding large balances, leading to misclassifications of these activities as whale accumulation.

When these distortions are eliminated, data shows that large holders continue to distribute their Bitcoin rather than accumulate it. As a result, the global balances of whales are on the decline, and wallets holding between 100 and 1,000 BTC are also decreasing, suggesting ongoing capital outflows from exchange-traded funds (ETFs).

Turning Point for Long-Term Holders

While the debate over the reaccumulation of Bitcoin by whales continues, other blockchain data indicate a constructive shift among a closely watched cohort: long-term holders. Matthew Sigel, head of digital asset research at VanEck, noted that these holders have become net accumulators in the last 30 days, following the highest selling activity in 2019.

This shift suggests that one of the most significant recent sources of pressure on Bitcoin's price may ease, at least in the short term. Although Bitcoin's price action has not yet reflected a sustainable recovery, the asset has also avoided retesting the threshold below $80,000 from November. At the time of writing, Bitcoin was slightly above $90,000.