Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Sell-Off by Small Bitcoin Traders Contrasted by Increasing Whale and Shark Holdings

Sell-Off by Small Bitcoin Traders Contrasted by Increasing Whale and Shark Holdings

CryptopotatoCryptopotato2024/07/11 16:52
By:Author: Chayanika Deka

Santiment revealed that small Bitcoin traders are selling off their stash, whereas whales and sharks are accumulating more.

Bitcoin has experienced its most significant decline in the current cycle and is currently trading at over 25% lower than its all-time high.

Data also suggests that BTC’s current dip period has sparked contrasting behaviors among investors with whale and shark wallets, depicting a different pattern than the smaller holders.

Bitcoin’s Big Wallets Increasing

The world’s leading crypto has been plagued with the distribution of seized tokens from the German government and the defunct crypto exchange Mt. Gox.

According to the latest analysis by crypto analytic platform Santiment, small traders have been actively offloading their BTC holdings, potentially due to fear, which has contributed to the current selling pressure in the market.

Contrastingly, there has been a notable surge in the number of whales holding 1,000 BTC or more, and sharks, with 10 to 1,000 BTC, are increasing their bitcoin holdings and have remained unfazed by the factors that have prompted the small traders to reduce their stash. In fact, July has seen a net increase of more than 261 wallets that now hold at least 10 BTC.

This shift suggests that larger, more established investors are increasingly confident in bitcoin’s long-term potential, possibly signaling a bullish outlook despite the crypto facing the deepest correcti on since late 2022.

Correction Shallower Than Past Cycles?

According to Glassnode’s “The Week Onchain” newsletter , the current correction is significantly shallower compared to previous cycles, indicating a strong market structure and decreased volatility as BTC matures as an asset class. Glassnode analysts further noted that the sell-off has resulted in 83% of the supply held by short-term holders (addresses that have held bitcoin for less than 155 days) falling into unrealized losses.

Their estimates show that 2.9 million BTC (around $166.75 billion at current rates) out of the 3.2 million BTC ($184 billion) held by short-term holders were pushed below their cost basis due to the recent drop to $53,000. This has exerted considerable pressure on Bitcoin and the broader cryptocurrency market.

“Nevertheless, drawdowns across our current cycle remain favourable when compared to historical cycles suggesting a relatively robust underlying market structure.”

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Nexchain Raises $1.5 Million in Presale: Is This the Top ICO of 2025?

Nexchain has actual tech, a trustworthy team, a clear plan, and a utility and long-term coin. Its $1.5 million early success is more than hype, it shows that seasoned investors see the possibilities.Nexchain: Best Crypto ICO of 2025Other Major Crypto Presales to Look Out ForFinal Words: Nexchain, the High-Potential ICO to Invest In

Coinomedia2025/05/13 19:00
Nexchain Raises $1.5 Million in Presale: Is This the Top ICO of 2025?

Anchorage Digital Buys USDM Issuer Mountain Protocol

Anchorage Digital acquires Mountain Protocol to boost its stablecoin portfolio with regulated USDM.Anchorage Digital Expands with Mountain Protocol AcquisitionWhy This Acquisition MattersA Growing Role in Crypto Banking

Coinomedia2025/05/13 19:00
Anchorage Digital Buys USDM Issuer Mountain Protocol

$6B USDT Inflows Spark Altcoin Surge

Tether injects $6B into the market, fueling altcoin momentum as Ethereum gains dominance.Altcoin Rally Fueled by USDT InjectionsEthereum Gains, Bitcoin Loses GroundAltcoins Catch the Momentum

Coinomedia2025/05/13 19:00
$6B USDT Inflows Spark Altcoin Surge

Can Unstaked 1000x & Hit Top 30 Market Cap? Analysts Think So – More on Ethereum Insights, Pi Price Surge

Unstaked’s $0.008481 presale could deliver 1000x returns and a top 30 market cap. Get expert insights on Ethereum’s Pectra upgrade and the latest Pi (PI) price surge.Unstaked: The Next MATIC Moment?Ethereum (ETH) Insights: Pectra Upgrade Sparks OptimismPi (PI) Price Surge: Can It Break Out of Consolidation?Wrapping Up

Coinomedia2025/05/13 19:00
Can Unstaked 1000x & Hit Top 30 Market Cap? Analysts Think So – More on Ethereum Insights, Pi Price Surge