Bitcoin wallets controlled by large holders accumulated 81,338 BTC recently, whereas retail investors with less than 0.1 BTC sold around 290 BTC. This indicates a divide in market sentiment with larger holders showing confidence and smaller investors potentially panicking. Institutional investment via Bitcoin ETFs also increased significantly. Bitcoin’s dominance in the crypto market is at a high, though analysts warn it must maintain certain price levels to avoid corrections.
Recent data from Santiment reveals a significant divide between behaviours of larger Bitcoin holders — often referred to as whales — and smaller retail investors. Over the past six weeks, large wallets have accumulated a staggering 81,338 BTC, which indicates a growing confidence in Bitcoin’s potential price uptrend. In contrast, wallets holding less than 0.1 BTC have offloaded around 290 BTC, reflecting a trend of panic selling or perhaps boredom amongst smaller holders.
This ongoing struggle between the two types of investors signals intriguing possibilities for the market, particularly as Bitcoin remains in a lengthy consolidation phase beneath the critical $100,000 threshold. According to Santiment’s X post from May 6, such contrasting behaviours could signify that Bitcoin may be gearing up for a rally. When we see big wallets accumulating alongside retail sellers exiting, it often indicates a forthcoming price surge, the firm noted.
The accumulation by holders between 10 and 10,000 BTC adds up to a noteworthy 0.61% increase in their total holdings, potentially hinting at a retest of the psychological $100,000 mark sooner rather than later. Santiment optimistically states that as May unfolds, the activity from key stakeholders suggests positive movements for those hoping Bitcoin will hit the $100,000 milestone soon.
However, the moment of excitement has been offset by observed behaviours from smaller holders, who sold off a total of around 290 BTC since March 26. Bitcoin has been hovering between approximately $76,273 and $97,210 to date, as outlined by CoinMarketCap stats. Notably, Bitcoin fell below the significant $100,000 level back on February 1, following the announcement of tariffs by then-President Donald Trump, and hasn’t managed to reclaim that price point since.
The inflow of funds into spot Bitcoin ETFs also paints a positive picture, as these funds have seen $4.41 billion flowing in since late March. This reflects a growing institutional interest in Bitcoin, even as smaller investors appear more hesitant.
Bitcoin’s dominance continues to thrive amidst the overall crypto market, which is primarily gravitating towards Bitcoin. As of May 6, Bitcoin dominance reached 65%, the highest level observed since January 2021, according to TradingView data. Currently, the metric registers at 65.19%, while CoinMarketCap’s altcoin season index still labels the market as being in ‘Bitcoin Season.’ Analysts have their sights set on the possibility of new all-time highs by the end of June, but Bitfinex analysts caution that Bitcoin must hold above the $95,000 mark to even consider retesting its peak values, or else the cryptocurrency may face significant corrections ahead.
It’s essential to note that this article does not serve as investment advice. The world of investing comes with its risks, and readers are encouraged to undertake their own research before making any financial decisions.
