Bitcoin Whales Accumulate at Record Pace as Smaller Traders Exit, Hitting 17-Month High

Bitcoin whales are on a buying spree, with wallets holding 100+ BTC reaching a 17-month high. As smaller traders sell amid market pressure, whales have accumulated over 133,000 BTC in the past month.

Bitcoin whales have been increasingly active in the market, seizing opportunities as smaller traders exit their positions. The number of Bitcoin wallets holding 100 or more BTC has surged to a 17-month high, reflecting a significant rise in accumulation over the past month.

Whale Accumulation Reaches New Highs

According to data from blockchain analytics platform Santiment, 283 new wallets crossed the 100 Bitcoin mark in August, bringing the total number of such wallets to 16,120—the highest level in 17 months. This surge in whale activity coincides with a decline in Bitcoin’s price from over $62,000 to around $58,000, prompting larger investors to increase their holdings.

Santiment highlighted this trend in an August 31 X (formerly Twitter) post, noting that “as crypto prices have let retail traders down, Bitcoin whales are growing in number.” The analytics platform estimates that wallets holding between 10 and 10,000 Bitcoins have collectively accumulated over 133,000 BTC, valued at more than $7.6 billion in the last 30 days.

Market Dynamics: Smaller Traders Exit, Whales Buy

The rise in whale activity comes as smaller traders, feeling the pressure of a declining market, continue to sell off their holdings. Adam Back, CEO of Blockstream and inventor of Hashcash, observed that whales have been consistently buying 450 BTC per day since the price dip on August 28, matching the daily Bitcoin mining output. “Go ahead sell them cheap corn,” Back remarked, highlighting the opportunity whales see in the current market conditions.

Santiment attributes the increase in whale accumulation to smaller traders who “impatiently drop their holdings.” Crypto analyst Axel Adler Jr speculated in a September 1 X post that smaller traders might be selling at a loss as the price dips below their entry points. He suggested that if the current trend continues, more traders could be forced to sell, potentially doubling the number of people willing to offload their Bitcoin holdings at a loss.

The Crypto Fear and Greed Index, which measures market sentiment, currently stands at 26, indicating a state of “Fear.” Throughout August, the index consistently reflected more fear than greed, with an average rating of 37.

Looking Ahead: A Positive Sign?

Despite the bearish sentiment among smaller traders, some experts view the increased whale activity as a potential positive indicator for the market. Vivek Sen, founder of Bitgrow Lab, pointed out that significant whale buying has historically preceded new all-time highs for Bitcoin. “The last time whales bought a lot, Bitcoin hit a new ATH,” Sen noted, suggesting that the current accumulation trend could signal an upcoming price surge.

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