- Bitcoin whales sold over 81,000 BTC in eight days, increasing market supply pressure.
- Large wallets now hold the lowest share of Bitcoin supply in nine months.
- Small retail wallets increased holdings, reaching their highest supply share in 20 months.
The cryptocurrency market extended its losses over the past 24 hours, with total market capitalization falling about 7.9% to $2.23 trillion as broad selling hit major digital assets. At press time, Bitcoin is trading around $65,100, down 7.8% after hitting a 24-hour low of $60,074.
Ethereum declined nearly 9% to trade at about $1,913, while several major altcoins, including BNB, XRP, Solana, and Dogecoin, recorded daily losses ranging between 9% and 14%, showing sustained risk-off sentiment across the sector.
But why did BTC drop to nearly $60,000, its lowest level since October 2024? New data hints that changes in investor behavior played a major role in the decline.
Large Bitcoin Holders Cut Exposure
Data from crypto analytics platform Santiment shows that large Bitcoin holders, often called “whales” and “sharks,” have been reducing their holdings in recent weeks. Wallets holding between 10 and 10,000 BTC now control about 68.04% of the total Bitcoin supply, the lowest share recorded in roughly nine months.
Over the past eight days alone, these large holders sold an estimated 81,000 BTC, increasing selling pressure across the market and contributing to the price drop.
Small Investors Continue Accumulating
At the same time, smaller investors have been steadily buying the dip. Wallets holding less than 0.01 BTC, often referred to as “shrimp” wallets, now account for about 0.249% of the total supply, the highest level in roughly 20 months.
Although this share remains small compared with large institutional holdings, analysts say the steady accumulation reflects continued retail confidence despite falling prices.
Diverging Behavior Shaping the Market Cycle
Periods when large holders sell while smaller investors continue buying have historically coincided with prolonged bear phases in crypto markets. Large investors often reduce exposure during uncertain periods, while retail buyers gradually absorb the supply.
Until selling from large holders slows and broader demand strengthens, Bitcoin could continue to experience elevated volatility, with price movements largely driven by shifts in supply distribution rather than a single major news event.
Related: Why a Bloomberg Analyst Thinks Bitcoin Could Still Fall Toward $10,000
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
