Bitcoin in Correction: Large Holders' Participation Drops to 9-Month Level, Driving Wealth Redistribution

The Bitcoin market is experiencing a period of intense selling pressure, with asset prices declining significantly in recent days. According to data from the on-chain analysis platform Santiment, the dynamic between institutional and retail investors is creating a scenario that historically precedes prolonged periods of volatility and further declines. With Bitcoin trading near $69,430 at the moment, the asset still reflects the accumulated pressure from the past weeks, during which it oscillated between much higher levels and critical support levels.

Wallet Concentration Drops During Critical Period: Data Reveals Massive Disinvestment Movement

Santiment’s on-chain analysis showed that the so-called “whale and shark” wallets — addresses holding between 10 and 10,000 BTC — now control approximately 68.04% of the total circulating Bitcoin supply. This level marks the lowest point recorded in the last 270 days (about 9 months), signaling a significant retracement in wealth concentration among the largest holders. Even more notably, these entities collectively sold around 81,068 BTC during a recent period of intense volatility, contributing to increased downward pressure on prices.

The context of this reduction is particularly important: while large Bitcoin holders are disinvesting, the asset was trading sharply lower, dropping from approximately $90,000 to near $65,000 during this interval — a depreciation of about 27%, according to CoinMarketCap data. Santiment’s analysis indicates that this combination of contrasting behaviors among investor segments is crucial for understanding future trends in the crypto market.

When Small Investors Accumulate and Giants Flee: A Historical Pattern Preceding Declines

While large wallets are executing aggressive sales, small investors continue to accumulate Bitcoin. Data shows that “shrimp” wallets — addresses holding less than 0.1 BTC — reached their highest levels in 20 months, now holding approximately 0.249% of the total Bitcoin supply, equivalent to about 52,290 BTC. Santiment observed that this contradictory dynamic — large holders selling while retail accumulates — is historically recurring before prolonged weak market cycles.

Ki Young Ju, CEO of CryptoQuant, reinforced this cautious outlook, commenting that “virtually all Bitcoin analysts now adopt a bearish view,” reflecting a radical shift in overall market sentiment. This alignment of negative views among experts coincides with a period where risk aversion permeates the entire crypto ecosystem, creating conditions for herd behavior that can amplify price movements.

A similar pattern emerged in mid-2024, when retail accumulation intensified while Bitcoin traded near $66,000, preceding an additional drop to $53,000 two months later. However, prices later recovered dramatically, reaching the historic $100,000 mark for the first time in December 2024, following a reversal in risk appetite that accompanied significant political events, including changes in the US administration.

Current data suggest that, although retail demand remains resilient during stress periods, the ongoing pressure from large holders disinvesting has become the defining feature of this corrective phase. This redistribution of wealth among investor tiers remains a key factor to monitor for future Bitcoin movements and the potential recovery trajectory after this consolidation phase.