Recent on-chain data indicates that major Bitcoin investors have been selling, with their share of the total supply falling to a multi-month low. Meanwhile, demand from large holders has remained subdued.
In a new analysis, on-chain analytics firm Santiment compared the behavior of investors at opposite ends of the market, using wallet sizes of 0 to 0.01 BTC to represent small retail investors and 10 to 10,000 BTC to represent key players like sharks and whales.
The data shows that since Bitcoin’s price peak in October, the smallest retail holders have steadily increased their share of the supply, even during the market downturn. Their holdings have grown by 2.5%, reaching the highest level since June 2024.
In contrast, sharks and whales have been selling. They reduced their holdings during the decline from October to December, briefly bought in January—coinciding with a dip in retail holdings—and then resumed selling sharply toward the end of the month. This recent selloff was steeper than any during the distribution phase in late 2025.
Despite Bitcoin’s recovery from around $60,000 and recent stabilization, these large investors have not shown renewed bullish sentiment. Compared to the October peak, the supply held by the 10 to 10,000 BTC cohort has dropped by 0.8%, bringing their network share to the lowest since May 2025.
Santiment noted that for a sustained rally, a reversal in behavior between these two groups is needed. Without support from key stakeholders, any price increase may be limited due to a lack of large capital inflows.
In a separate analysis, Santiment also examined mid-tier holders. Wallets holding 0.01 to 1 BTC have increased their combined supply by 1.05% since October, reaching a 15-month high. Meanwhile, wallets holding 1 to 10 BTC have reduced their holdings by 0.49% over the same period.
At the time of writing, Bitcoin is trading around $67,400, up 0.7% over the past week.
Frequently Asked Questions
Frequently Asked Questions About Bitcoins Largest Holders Selling
Beginner Questions
Q What does it mean that Bitcoins largest holders are selling
A It means that investors or entities who hold very large amounts of Bitcoin have been reducing their holdings by selling them on the market
Q Why is this news significant
A Its significant because these large investors can influence the market When they sell a lot at once it can increase selling pressure and potentially cause the price to drop
Q What is supply held by major investors
A This refers to the total percentage of all existing Bitcoin that is held in wallets belonging to largescale investors A drop means they collectively own less Bitcoin than before
Q Should I be worried about my own Bitcoin investment
A Not necessarily Market cycles with large investors buying and selling are normal Its a factor to consider but not the only one Its important to focus on your own longterm strategy and risk tolerance
Q Where can I check this kind of data myself
A You can look at blockchain analytics websites like Glassnode or CryptoQuant which track wallet balances and investor behavior
Intermediate Market Impact Questions
Q What are some common reasons these large holders might be selling
A Common reasons include taking profits after a price increase risk management ahead of potential market downturns needing liquidity for other investments or expenses or rebalancing their investment portfolios
Q Does this automatically mean the Bitcoin price will crash
A No it doesnt automatically mean a crash While it adds selling pressure other factors like new institutional buying positive regulations or broader economic conditions can counteract it The markets reaction is not always straightforward
Q Whats the difference between a normal selloff and a distribution phase
A A normal selloff might be shortterm profittaking A distribution phase is a broader longerterm trend where large holders steadily transfer coins to smaller newer investors which can be a typical part of a market cycle
Q Could this selling be a sign of a major problem with Bitcoin
A Not usually Its more often a sign of financial strategy or market sentiment among big players It doesnt inherently reflect a