 ▲ Bitcoin (BTC) whale / AI-generated image |
As Bitcoin plunged more than 27% from its $90,000 peak to around $65,000, the large whales that had been driving the market dumped over 80,000 BTC in just the past eight days, reducing their share to the lowest level in nine months.
During the sharp drop from about $90,000 to the mid-$65,000 range over a little more than a week, the share held by large investors shrank rapidly. On-chain data analysis firm Santiment reported that so-called whale and shark addresses holding between 10 BTC and 10,000 BTC sold a combined 81,068 BTC over the last eight days. This marks the lowest ownership level since late May last year, when Bitcoin surged past $100,000.
The share of total supply held by addresses with between 10 BTC and 10,000 BTC has now fallen to 68.04%. As market participants often view large investors’ fund flows as a key signal for accumulation or distribution, this mass selling by whales is widely interpreted as a strong sign that the market has already peaked and entered a full-fledged downturn. Santiment warned that a structure in which key stakeholders sell while retail investors absorb supply has historically been a classic pattern leading to bear markets.
Meanwhile, as large whales exit the market, the share held by shrimp addresses with less than 0.1 BTC has reached a 20-month high. Retail investors are stepping in to buy the sell-off from institutions and whales at lower prices, but the overall market strength appears to be deteriorating rapidly. Ki Young Ju, CEO of CryptoQuant, also noted that virtually all Bitcoin analysts have turned bearish, underscoring the gloomy market sentiment.
The Fear and Greed Index, a gauge of investor sentiment, has plunged to 9 out of 100, the lowest level since the Terra collapse in 2022. With extreme fear persisting, concerns about further downside outweigh expectations for a short-term technical rebound. As of the time of writing, Bitcoin is trading around $64,792, slightly recovered from its 24-hour low near $60,000, but it remains highly vulnerable to additional selling pressure.
Experts warn that if Bitcoin fails to firmly reclaim the $65,000 support level, market uncertainty could become prolonged. Amid external headwinds such as macroeconomic instability and trade tensions, many advise a cautious approach until clear signs of large investors returning to the market emerge.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any losses incurred based on it. The content should be interpreted solely for informational purposes.*