Bitcoin Whales Liquidate Holdings as Retail Investors Accumulate

A significant shift is underway in the Bitcoin market, with large institutional and individual holders, often dubbed "whales" and "sharks," offloading their BTC. On-chain data reveals their collective supply share has plummeted to its lowest point since May 2025, signaling a notable distribution phase amidst a fluctuating market.

Contrasting Investor Behavior

On-chain analytics firm Santiment highlights a striking divergence in investor behavior. While larger entities (those holding between 10 and 10,000 BTC) have been actively selling off their Bitcoin, smaller retail investors (holding 0 to 0.01 BTC) are in a clear accumulation phase. This retail cohort has expanded its holdings by 2.5%, reaching its highest supply percentage since June 2024. Interestingly, mid-tier investors (0.01 to 1 BTC) have also increased their positions, yet those holding between 1 and 10 BTC have reduced theirs. This indicates a complex interplay, where the smallest investors appear undeterred by the broader market sentiment influencing larger players.

Implications for Future Rallies

The continuous distribution by significant stakeholders raises questions about Bitcoin's potential for sustained rallies. Santiment suggests that without robust support from these key holders, any upward price movement may be limited due to a lack of substantial capital infusion. Following a recent dip below the $60,000 mark, Bitcoin has shown some recovery and stability, currently trading around $67,400, reflecting a modest 0.7% increase over the past week. However, the dwindling supply held by whales and sharks, now down 0.8% from its October peak, underscores a cautious sentiment among the market's biggest players, pushing their network share to its lowest in nearly a year. This dynamic sets up a critical juncture, where the sustainability of Bitcoin's price action hinges on whether these large investors will reverse their selling trend and re-enter the accumulation game.