The post Bitcoin Wallets Drop to Five-Month Low Amid Retail Selling and Whale Accumulation Amid Economic Uncertainty appeared on BitcoinEthereumNews.com.

The recent trend in Bitcoin activity reveals a compelling juxtaposition between retail investors exiting the market and significant accumulation efforts by large holders. As geopolitical tensions and institutional outflows weigh heavily on the market, over 39,620 BTC worth approximately $3.8 billion were acquired by whales, suggesting a strategic shift amid the turmoil. “This could indicate that the market is nearing a bottom, and the capitulation phase might be ending,” stated Juan Pellicer from IntoTheBlock, emphasizing the potential for a market reversal. Bitcoin faces retail sell-offs while whales accumulate during market turmoil, signaling potential shifts. Will the bottom be near? Explore the dynamics behind these trends. Retail Investors Liquidate Holdings Amidst Institutional Outflows In the current climate, retail investors are liquidating Bitcoin (BTC) holdings at an alarming rate. As reported, the number of Bitcoin addresses with a non-zero balance has fallen to below 52.45 million, the lowest since September 2024. This decrease raises concerns about market participation from retail investors, particularly when juxtaposed with historical highs. Comparatively, just a month ago, on January 20, the Bitcoin network boasted over 52.56 million wallets, coinciding with Bitcoin’s all-time price peak of $109,000. The exodus of retail money appears to correlate with a series of negative net outflows from U.S. spot Bitcoin Exchange-Traded Funds (ETFs), which have accumulated over $494 million in outflows according to Farside Investors data. Whales Step In: Significant Accumulations Reshape Market Sentiment Despite retail selling pressures, large Bitcoin holders, often referred to as whales, have seized the opportunity to accumulate Bitcoin at a discount. Data from IntoTheBlock indicates that these large holders accumulated more than 39,620 BTC, amassing roughly $3.79 billion in net flows within a single day, specifically on February 5, when Bitcoin dipped below $97,600. This trend of accumulation may symbolize a market bottom, as noted by analysts…

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Filed under: News - @ February 13, 2025 4:24 pm