According to data from CryptoQuant, claims that large holders are massively buying up Bitcoin again are overstated. The figures often shared on social media can be skewed by internal transfers between exchange wallets, rather than representing new purchases. This distinction is important because large movements tied to exchanges can appear as if a single entity is accumulating, when it’s often just internal accounting.
Exchange companies frequently combine funds from many smaller accounts into a few larger wallets for operational or compliance purposes. When this happens, on-chain analysts may mistakenly label these consolidated addresses as “whales,” making it seem like there are more big holders than there actually are. Julio Moreno, head of research at CryptoQuant, notes that when these exchange-related movements are filtered out, the balances held by genuine large holders are still declining. Specifically, holdings in addresses with 100 to 1,000 BTC have decreased, aligning with outflows from spot Bitcoin ETFs.
In contrast, another group has changed its behavior. Matthew Sigel, head of digital assets research at VanEck, reports that long-term Bitcoin holders have been net buyers over the past month, following their most significant selling period since 2019. This shift could lessen a major source of selling pressure. While it doesn’t ensure a price surge, it does indicate that at least one key group has stopped adding to sell orders. Since markets respond to the balance of buyers and sellers, this move by long-term holders weakens the argument that a single group is pushing prices down.
Bitcoin’s price has been fluctuating near $90,000 amid light holiday trading. At report time, it was around $89,750, with a 24-hour trading volume of about $52 billion. The price is roughly 2.8% below a recent high of $90,250, and Bitcoin’s market cap stands at approximately $1.75 trillion, based on a circulating supply near 20 million coins. Trading has seen sharp swings, but low volume means these moves lack the conviction needed for a decisive breakout or breakdown.
Since the launch of U.S. spot Bitcoin ETFs in early 2024, the landscape of Bitcoin ownership has shifted. These ETFs now represent a significant portion of demand, influencing where Bitcoin is held and how flows appear on-chain. Data suggests that ETF outflows have contributed to the decline in the 100–1,000 BTC holdings bracket, even as some long-term holders are quietly accumulating.
Overall, the evidence points to a market in consolidation rather than the start of a new bull run or a major crash. Reports of a massive wave of whale accumulation were exaggerated due to unaccounted exchange consolidation. However, the situation isn’t entirely one-sided: long-term holders have shown buying interest, even as large non-exchange addresses continue to reduce their holdings. The future price direction will likely hinge on whether ETF flows rebound significantly and if trading volume increases enough to validate any sustained move.
Frequently Asked Questions
FAQs Bitcoin Whale Activity OnChain Data
Beginner Questions
1 What is a Bitcoin whale
A Bitcoin whale is an individual or entity that holds a very large amount of Bitcoin typically enough to potentially influence the market price through their buying or selling activity
2 What is onchain data
Onchain data is the record of all transactions permanently stored on the Bitcoin blockchain Its public and transparent allowing anyone to analyze activity like wallet movements transaction sizes and holdings
3 What does resurgence of whales mean
It refers to reports or observations that large holders are becoming more activefor example by accumulating more Bitcoin or moving significant amounts between walletsafter a period of relative quiet
4 Why is whale activity important
Whale movements are watched closely because large purchases can signal confidence and push prices up while large sales can create selling pressure and push prices down They can indicate sentiment among big players
Intermediate Analytical Questions
5 What onchain metrics are used to track whale activity
Common metrics include
Wallet Balances Tracking the number of addresses holding 1000 BTC
Exchange Net Flow Monitoring if large amounts are moving to exchanges or from exchanges
Transaction Volume Filtering for highvalue transactions
6 The report says the resurgence may not be as significant as reported Why would that be
Onchain data can be misinterpreted A single whale can control many addresses so an increase in whale addresses might just be one entity reorganizing funds not many new whales entering Also activity could be internal transfers rather than new investment
7 Can exchanges distort whale data
Yes Large inflows to an exchange could be a whale preparing to sell or it could be an institution moving assets for custody staking or institutional servicesnot necessarily for a market sale Its crucial to analyze the context of the movement
8 Whats the difference between accumulation and simple wallet movement