Key Points
- Whales and retail investors have been aggressively accumulating Bitcoin, with whales acquiring over 22,000 BTC in three days.
- While short-term whale interest may be fading, long-term conviction remains strong.
Large-scale Bitcoin holders, known as whales, and retail investors have been accumulating Bitcoin at a rapid pace recently, indicating strong market confidence.
According to on-chain data, whales have acquired over 22,000 BTC in just three days, which has pushed total whale holdings beyond 3.44 million BTC. This surge in demand coincided with a sharp increase in Bitcoin’s price, pushing Bitcoin (BTC) from $82,000 to nearly $98,000.
Whale Manipulation or Buying the Dip?
On-chain data shows a steady increase in whale Bitcoin holdings throughout February and early March. Over the past month, whales have acquired approximately 60,000 BTC, marking one of the most aggressive accumulation phases in recent history.
The correlation between whale activity and price movements is apparent. Bitcoin’s price fluctuated between $82,000 and $98,000, with a dip in late February, followed by a strong recovery in early March. The timing of these purchases suggests that large holders have been strategically accumulating during corrections.
Are Whales Leaving the Market?
Data from Glassnode and IntoTheBlock revealed patterns in accumulation and distribution, highlighting their impact on the price action. Entities holding ≥1,000 BTC have been reducing their holdings since Bitcoin peaked at $106,159 in January.
The number of such entities dropped from 1,720+ in December to 1,683 by March, a decline of about 2.14% over three months. This reduction suggests that whales either took profits or redistributed their holdings.
The supply held by whales (≥100k BTC) ranged from 22.261% in February to 22.173% in March, a small but noticeable reduction. Meanwhile, retail addresses (<1 BTC) continued to accumulate Bitcoin, showing consistent growth despite volatility. The data confirms a classic accumulation-distribution cycle, with large whales taking profits post-rally and smaller players stepping in. However, a drop in netflows followed, with only +2.08k BTC on 9 March, a sign of reduced demand from large holders. Bitcoin’s price decline from $97k in early February to $80k in March aligned with the sharp fall in its netflows. The 7-day netflow change dropped by -27.69%, while the 30-day netflow plummeted by -546.90%, pointing to potential exhaustion in institutional accumulation. Despite this, the 1-year netflow was up by +714.19% at press time, indicating that while short-term whale interest may be fading, long-term conviction has not disappeared entirely. Whether Bitcoin’s next move is another rally or a deeper pullback will depend on one key question – Are the remaining whales still willing to buy?
