Bitcoin Whales Intensify Accumulation Amid Retail Sell-Offs

Bitcoin Whales Intensify Accumulation Amid Retail Sell-Offs

Bitcoin accumulation addresses have witnessed a surge in inflows over the past week, as large holders take advantage of retail sell-offs to amass more of the leading cryptocurrency.

Despite Bitcoin’s recent struggles, whales remain undeterred, viewing price volatility as a prime opportunity to accumulate. Market data suggests that significant holders continue to “buy the dip” while retail investors liquidate their positions.

Whale Accumulation on the Rise

Notable crypto analyst Vivek Sen highlighted this accumulation trend in a recent tweet, citing on-chain data from CryptoQuant. According to the analytics platform, Bitcoin accumulation addresses saw a substantial inflow of 31,226 BTC on February 4, amounting to approximately $3 billion at current prices.

This increase aligns with a broader trend of aggressive accumulation by whale wallets throughout the past week. Ki Young Ju, CEO and founder of CryptoQuant, indicated that such inflows suggest strategic accumulation, likely involving the transfer of Bitcoin into custody wallets following over-the-counter (OTC) trades.

Whales Capitalizing on Market Fear

Further analysis by market intelligence firm Santiment corroborates the growing accumulation pattern among Bitcoin whales. According to their latest report, large holders often seize market dips as buying opportunities, aligning with the classic investment philosophy of “buy when there’s fear in the market.”

In February alone, the number of addresses holding at least 100 BTC has increased by 135. This accumulation trend appears to be fueled by the exit of smaller retail investors, many of whom have sold off their holdings due to market uncertainty.

Conversely, data shows a notable decline in smaller Bitcoin addresses. Santiment’s report reveals that wallets holding less than 100 BTC have collectively dropped by 138,680 in February, indicating a mass exit of newer investors—particularly those who entered the market within the past six months.

Market Outlook: A Potential Rebound?

Despite the ongoing shakeout, historical data suggests that such conditions often precede market rebounds. Santiment’s analysis indicates that Bitcoin could see a bullish reversal in the coming weeks or months, following the completion of the current accumulation phase.

At present, Bitcoin continues to trade below the $100,000 mark, with a current price of $98,266, reflecting a 6% decline over the past week. However, the prevailing accumulation trend suggests that whales may be positioning themselves for a potential market recovery.