 ▲ Bitcoin (BTC) |
Despite Bitcoin (BTC) price volatility, whales with massive capital are aggressively accumulating, strengthening the market’s downside support.
Cointelegraph reported on February 26, citing on-chain data from crypto analytics platform Santiment, detailing the movements of large Bitcoin holders. According to Santiment’s analysis, mid-to-large wallets holding between 100 BTC and 1,000 BTC, as well as whale wallets holding more than 1,000 BTC, have significantly increased their buying during the recent price correction. While retail investors have been selling amid fear, major capital appears to be using this period as an opportunity to buy at lower levels.
This accumulation by large holders could create a liquidity squeeze in the market, serving as a powerful foundation for future price gains. Notably, the number of wallets holding more than 1,000 BTC has risen sharply in recent weeks, demonstrating substantial capital inflows from institutional-level investors. Santiment assessed that heightened accumulation activity among large holders strengthens the market’s fundamentals and represents a phase of energy buildup for a potential strong breakout. The movement of Bitcoin into highly liquid large wallets may trigger supply shortages, acting as a catalyst for price increases.
Although overall market sentiment remains unstable, whales continue to pursue firm portfolio diversification strategies. Unlike retail investors who react sensitively to short-term price declines and engage in stop-loss selling, major capital is focused on Bitcoin’s scarcity and its long-term potential as a store of value. Analysts noted that the accumulation trend among large wallet holders has historically appeared just before bullish market reversals, suggesting that the current prolonged sideways movement may soon break.
The increasing amount of Bitcoin being withdrawn from exchanges is also interpreted as a positive sign. As whales move their newly purchased Bitcoin to private wallets or cold storage, the available supply on exchanges is rapidly declining. This supply bottleneck creates conditions in which even modest buying pressure can trigger strong price reactions. Santiment analyzed that as long as the proportion of large wallet holdings continues to expand, the market’s mid- to long-term outlook remains optimistic, with limited downside risk.
Bitcoin is currently undergoing a phase of preparation for a new leap, supported by purchases from major capital. As institutions and whales take control of market supply and absorb available volume, the impact of retail investor departures is gradually easing. Once macroeconomic uncertainty subsides and liquidity conditions improve, the accumulated holdings of whales are expected to serve as a key driver of a potential price surge.
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