Bitcoin (BTC) whale and shark wallets gradually return to buying

Bitcoin (BTC) whale and shark wallets went through several stages during the most recent bull cycle. Large-scale traders and accumulation wallets have returned to buying as BTC dipped as low as $82,000 again. 

Whale and shark wallets are returning to buying after the latest dip of BTC to as low as $82,000. Accumulation is still tentative and has not reflected in Bitcoin’s price yet. However, wallets with over 10 BTC appear to have turned a corner and are now back in accumulation mode. 

Whale and shark wallets sold some of their holdings after February 20, adding to the overall price weakness. The selling continued into early March, based on Santiment data. Since then, accumulation wallets have resumed buying, sparking hopes of a continuation of the current bull cycle. 

Wallets with shark or whale balances have accumulated another 5,000 BTC into their wallets in the past few days, signaling that even smart money is back to buying the dip. Over 152K addresses hold more than 10 BTC, with a relatively small shift, though still signaling a marked shift in demand. 

Notably, BTC is still not responding to small-scale bullish signals. The leading coin continued to slide, reaching $81,871.27 during European trading hours on Monday. Bitcoin is still swayed by long liquidations, where spot buying cannot reverse the trend. 

The Bitcoin fear and greed index is again down to 20 points, signaling extreme fear. During such fearful trading times, BTC continues to see accumulation from whales that try to re-buy at a lower price. 

Bitcoin relies on holders, but new demand returns slowly

All Bitcoin wallets older than three months retained or slowly increased their balance. Wallets created less than a month ago are among the most active sellers, signaling a capitulation in the past few weeks. Currently, the cohort of new buyers to wallets aged 1-3 months is one of the biggest, holding 9.36% of the BTC supply. 

The current buying and holding behavior shows a shift from older whales from the previous bull cycle taking profits, while newer wallets are rebuilding their positions. 

Overall, Bitcoin demand has been trending downward and has not given signs of a decisive trend reversal. The recent buying noted for Bitcoin and Ethereum is just the first potential sign of a trend reversal. Whales will usually buy the dip only after retail has completely capitulated, and seems no longer interested in buying. 

The BTC demand index is back to levels from September 2024. The BTC price moves show another sign of outliving the Donald Trump election and inauguration narratives. Currently, the BTC demand index is back down to 31.50 points, after peaking in November 2024. 

The recent shark and whale buying are barely eating into the overarching trend of whales realizing profits that has been running throughout the 2024 bull market. Wallets with over 1,000 Bitcoins have been the heaviest sellers. From February to the current date, at least 100 wallets liquidated and sold at least a part of their holdings. As of March 10, only 2,054 wallets hold over 1,000 BTC. 

ETF inflows and corporate buying have only partially offset the sales from older whales. While Bitcoin maximalists expect a much more significant appreciation, short-term and medium-range whales continue to take profits along the way. 

Miners are also holding their coins closely, with 1.92M BTC held in reserves. Selling is relatively slow, as revealed by the Miner Position Index. 

The index, standing at 0.06 points, signals miners are holding and accumulating, with sales accounting for only a small fraction of their coins. The current levels of the index show miners are ready to sell during the most active portion of the bull market to lock in the biggest gains possible. Bitcoin miners aim to make the most of their scarce holdings, in a bid to rebuild and create additional mining facilities. 

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