Bitcoin Retail Investors Stacking 10,627 BTC Daily as Whales Dump Holdings

This trading week proved rather turbulent for Bitcoin as the premier cryptocurrency fell to as low as $91,000 on Monday amid concerns of a potential trade war

Bitcoin encountered a turbulent trading week with lows of $91,000 on Monday amid trade war concerns. Despite a brief recovery to over $102,000, the premier cryptocurrency hovered around $96,000 in a range-bound market.

However, blockchain analytics firm Glassnode provided insights into Bitcoin investor behavior over the past few months.

In a new X post, Glassnode highlighted the recent activity of Bitcoin holders, stating that retail investors (defined as addresses holding ≤1 BTC) have been accumulating at a rapid pace since mid-December.

Specifically, these smaller investors are purchasing Bitcoin at an average rate of 10,627 BTC per day, a 72% increase compared to the daily average of 6,177 BTC in the previous year.

This aggressive buying by retail investors contrasted sharply with their behavior in November, when they largely opted to book profits as Bitcoin surged past the $100,000 mark. However, their return to accumulation despite Bitcoin's struggles since December indicated a strong belief in the asset's long-term profitability.

On the other hand, Bitcoin whales (defined as investors holding over 1,000 BTC) were observed to be selling their holdings at an unprecedented rate.

Since November 24, these large investors had been moving Bitcoin to exchanges at an average rate of 32,509 per day, suggesting a potential 9x increase in selling pressure compared to BTC's yearly average.

Typically, a large sell-off by market whales is considered a bearish signal, indicating uncertainty about an asset's future price. However, in Bitcoin's case, a significant portion of the selling by market whales could be attributed to profit-taking rather than a loss of confidence.

Moreover, the recent surge in accumulation by retail investors served as a key supply absorber, mitigating potential drastic price declines. As Bitcoin continued to search for stability, retail investors were crucial in maintaining the current demand to sustain the asset's bullish structure.

At press time, Bitcoin was trading at $96,679, having experienced a 0.84% decrease over the past 24 hours. This performance contributed to the asset's price decline of 5.71% over the past week.

Despite the price decrease, trading volume had surged by 17.22%, indicating increased market activity and interest. Bitcoin's price action showed consolidation within the $95,000–$100,000 range, setting the stage for a potential breakout. To confirm an uptrend, market bulls were aiming to drive a rally beyond the critical $105,000 resistance level.