Retail Bitcoin investors are increasing their accumulation efforts at an unprecedented rate, absorbing supply 72% faster than the average rate of the past year. According to Glassnode data, wallets with less than 1 BTC, often referred to as “shrimps,” have been acquiring 10,627 BTC per day since mid-December. This is significantly higher than the daily average of 6,177 BTC from the past year. This surge in accumulation is a notable shift from November 2024, when small holders were offloading Bitcoin as prices surpassed $100,000.
In contrast, whale investors holding over 1,000 BTC have been offloading Bitcoin to exchanges at a staggering rate of 32,509 BTC per day during the same period. Glassnode reports that this sell-side pressure is nearly nine times higher than their yearly average. The diverging behavior of smaller and larger holders indicates a redistribution of Bitcoin ownership. While retail investors demonstrate long-term confidence in Bitcoin’s value through consistent accumulation, whale sell-offs create counterpressure. This has contributed to increased volatility as their selling activity outweighed buying momentum.
The tug-of-war between Bitcoin holders is reflected in Bitcoin’s price floor. In December 2024, Bitcoin broke into the unprecedented six-figure range, peaking at $108,268, but closed the year below $100K. In January, it reached a new peak near $110K but has since dipped to $91,242 and is struggling to sustain an upward trend. Amid these fluctuations, fear has gripped market participants, with the market greed index dropping to a score of 35, entering the fear threshold.
However, a recent analysis by Santiment suggests that retail sentiment toward Bitcoin has strengthened. Many investors are returning to Bitcoin as a relative safe haven, especially as altcoins have experienced significant price dips. The report also notes growing optimism that Trump’s pro-crypto policies will eventually generate bullish momentum for Bitcoin, but it cautions that a cooling of this widespread optimism would be healthier.
In a separate report, Santiment reveals that some Bitcoin whales are taking advantage of the current volatility by accumulating more coins. February saw an increase of 135 wallets holding 100+ BTC, while the number of addresses holding below 100 BTC decreased by around 138,000. According to Santiment, this shift in market dynamics could create an ideal setup for long-term growth, even if it takes a few weeks or months for the positive effects of the accumulations to be fully realized.