Bitcoin Mega Whales Reduce Buying—What This Means for BTC Rally

Recent reports show that Bitcoin mega whales have decreased their buying activity, potentially stalling the cryptocurrency rally. While smaller groups are distributing, larger investors continue to accumulate. The Accumulation Trend Score indicates a possible shift in market dynamics, especially with mega whales now showing neutral behaviour, which may influence future price stability.

Recent data indicates a slowdown in purchasing activity among Bitcoin’s largest investors, often referred to as mega whales. According to the analytics firm Glassnode, the trend could signal cooling enthusiasm for Bitcoin, raising concerns about a potential impact on recent price rallies.

Glassnode recently highlighted the Accumulation Trend Score, a metric that assesses whether Bitcoin investors are buying or selling. This score takes into account changes in wallet balances and the size of those wallets, giving larger wallets a greater influence. Generally, scores over 0.5 suggest investors are accumulating Bitcoin, while scores under that threshold point to market distribution.

A glance at the recent scores shows smaller investors, holding less than 10 BTC, are in distribution mode as their scores have dipped below 0.5. Meanwhile, larger holders are more optimistic. The score for those holding 100 to 1,000 BTC, known as sharks, sits at 0.8. Even more positive, the whales holding 1,000 to 10,000 BTC have a score of 0.9, indicating strong accumulation in that group.

However, the mega whales—those with over 10,000 BTC—display a concerning trend. Their Accumulation Trend Score, which had previously surged to nearly perfect, has since dropped to around 0.5. This shift suggests these largest investors, who often lead market trends, are now neutral and possibly retreating from accumulating Bitcoin, which could spell trouble for rallying prices.

Despite the mega whales adjusting their strategies, sharks and smaller whales remain active buyers. The uptick in purchases over the previous months helped fuel a rally, although the mega whales did start to distribute lightly during this period. An aggressive sell-off came later, right before the broader market could react, highlighting the influence these giant players have.

As Bitcoin’s price stagnates near the $104,000 threshold, the trend and actions of mega whales could be pivotal. The current inactivity among them raises questions about the sustainability of recent gains. Investors will want to keep a close eye on the Accumulation Trend Scores, particularly within this impactful cohort—market movements could hinge upon their next moves.