Large Bitcoin holders are tightening their grip on the market while the smallest buyers surge in a contrasting trend, highlighting a bifurcated on-chain landscape as traders weigh whether the current pullback has run its course. New data from the sentiment analytics firm Santiment shows that the total share of the supply controlled by whales—wallets holding between 10 and 10,000 BTC—has slid to a nine-month low. At the same time, the same period has seen a sharp drawdown in the number of coins held by these large holders, underscoring a wave of offloading that accompanied a sizable price retreat.
Bitcoin (CRYPTO: BTC) has been a focal point for on-chain watchers, with Santiment reporting on X that whale and shark wallets collectively owning a dominant slice of the supply have fallen to roughly 68.04% of all BTC. The firm highlighted a dramatic dump of 81,068 BTC in an eight-day window, a move that coincided with a slide in price from around $90,000 to roughly $65,000—a decline of about 27% in short order. At the time of publication, the asset traded near $64,792, having touched a 24-hour low just above $60,000.
Bitcoin large wallet holders appear to be offloading aggressively. Source: Santiment
Market participants frequently monitor the behavior of big holders to gauge whether the asset is peaking or set for an uptrend. In this cycle, the on-chain dynamic appears to be tilting toward caution among the largest entities, even as a different cohort—retail investors—picks up the pace elsewhere in the ecosystem.
Evidence of a broader mood shift emerged as Ki Young Ju, the CEO of CryptoQuant, posted on X that “every Bitcoin analyst is now bearish,” a sentiment mirrored by the widely watched Fear & Greed Index. The index’s Friday reading landed at 9 out of 100, its lowest level since mid-2022 when anxiety spiraled in the wake of the Terra collapse. The downgrade in sentiment comes as institutions and individuals reassess exposure in a market characterized by heightened volatility and regulatory chatter.
The split in on-chain behavior—whales trimming exposure while retail buyers maneuver into positions—arrives amid a historical backdrop. The Fear & Greed gauge, which aggregates multiple data points to measure market sentiment, has repeatedly shown that extremes can precede sharp reversals, though they do not by themselves guarantee a bottom. This pattern—whales selling into uncertainty while smaller buyers accumulate—has historically appeared during bear phases, suggesting that the current configuration could sustain a prolonged period of price consolidation. Index
Meanwhile, a separate part of the on-chain narrative concerns the so‑called “shrimp wallets”—addresses with less than 0.1 BTC. These micro-holders have climbed to a 20-month high, a trend that Santiment notes has persisted since June 2024, when Bitcoin traded near $66,000 before dipping to the $50s later that year. The uptick in shrimp wallets indicates a renewed grassroots interest among smaller participants, a development that often accompanies a more distributed demand profile and can complicate attempts to chart a clear macro top or bottom.
Historical context also looms large: Bitcoin briefly reached the $100,000 milestone in December 2024 amid a wave of speculative exuberance and a political pivot in the United States, a reminder that sentiment can swing in cycles even as on-chain fundamentals evolve. As of the latest readings, the cohort of these small holders represents about 0.249% of the total supply, amounting to roughly 52,290 BTC. This pinpoints an ever-narrowing window for the top-tier holders relative to the broader supply base, even as the market navigates a patchwork of macro headlines and shifting liquidity conditions.
Bitcoin is down 29.62% over the past 12 months. Source: CoinMarketCap
As the market digests these on-chain signals, traders are watching the price action with heightened sensitivity. The current price level—roughly mid‑$60,000s—positions BTC in a range that is susceptible to both macro risk-off moves and any rapid shifts in liquidity. The discordant signals from different market segments—whale selling versus retail accumulation—could prolong a period of consolidation, especially if macro data or regulatory headlines tilt risk appetite in either direction. The ongoing divergence also raises questions about the durability of any potential countertrend rally until whales either re-enter or their offloading abates meaningfully.
