On-chain data shows large holders quietly buying the dip while small wallets capitulate amid extreme fear.
Bitcoin’s sharp decline below the $90,000 mark has triggered a wave of panic across retail investors, but on-chain data tells a very different story behind the scenes. While smaller holders are offloading BTC at increasing rates, whales are aggressively accumulating, signaling a potential market turning point. The shift in wallet behavior offers key insights into market sentiment, long-term positioning, and what may be ahead for Bitcoin’s price trajectory.
Whales Accumulate as Retail Capitulates
Fresh data from Glassnode highlights a significant rise in Bitcoin whale wallets holding over 1,000 BTC, a trend that began in late October and intensified over the past week. The total number of whale wallets climbed from a yearly low of 1,354 to 1,384, marking a 2.2% increase as BTC fell sharply.
This pattern reflects a classic market dynamic where large holders capitalize on fear-driven sell-offs. Whales historically accumulate when retail investors show signs of exhaustion or panic.
Meanwhile, small wallets — those holding 1 BTC or less — saw a noticeable contraction. Their total count slipped from 980,577 to 977,420, reaching a new yearly low. This drop underscores heightened selling pressure among smaller investors who are often more sensitive to price volatility.
Market Fear Hits Extreme Levels
Bitcoin’s dip below the psychologically important $90,000 threshold pushed the broader sentiment into deep anxiety. The Crypto Fear & Greed Index fell to 11/100, marking extreme fear territory.
Market analysts on X (formerly Twitter) are also pointing to potential support zones. Some highlight Bitcoin’s approach toward the $87,700 range, where key moving averages and prior resistance-turned-support converge — a level many expect could trigger a near-term bounce.
However, several industry experts view the downturn as an opportunity rather than a cause for alarm.
Matt Hougan, CIO at Bitwise Asset Management, noted in a recent interview that current price levels represent a “generational opportunity” for long-term investors. He added that Bitcoin’s early decline ahead of the broader market pullback may position it for a quicker recovery as conditions stabilize.
Several analysts argue that the current correction may be nearing exhaustion, setting the stage for a potential rebound if whales continue to absorb supply.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.