Bitcoin is falling, but large holders are seizing the moment and quietly accumulating assets while retail investors panic sell off BTC
Santiment's onchain data shows that influential market participants are treating the current downturn as a lucrative opportunity. They are stocking up on bitcoins (BTC) and ignoring warnings of crashes and bear markets.
Whales are actively buying up BTC
Brian Quinlivan, lead analyst at Santiment, notes a significant increase in bitcoin accumulation by whales over the past three months. According to Santiment, addresses holding at least 10 BTC have increased their balances by 34,200 BTC (roughly $2.15 billion) since June, despite price volatility.
“While others are saying we are in a bear market and a crash is coming, whales are just buying up tons of coins while everyone panics.”
This indicates that the whales are confident in bitcoin's long-term potential, even though small investors are succumbing to market panic. Researchers at Bybit note that a similar bullish trend is also seen in bitcoin options markets.
History repeats itself
Historically, periods of fear and panic selling often open up profitable buying opportunities. To do so, you just have to be able to understand market cycles. Quinlivan notes that crowd behavior can serve as a signal to the contrary. When retail investors sell out of fear, whales start actively buying at discounted prices.
This pattern coincides with historical examples where active accumulation by whales during recessions preceded a price recovery.
“We saw the biggest spike in negative mentions since the big August crash last month ... it turned out to be the perfect time to buy,” Quinlivan added.
Another important indicator confirming the whales' confidence is the declining volume of BTC on exchanges. This reflects a long-term holding strategy. Investors are moving their assets into cold wallets and this reduces the risk of panic sell-offs.
The recent volatility may deter novice investors. However, experienced market participants see opportunities in the current situation. Their activity indicates confidence in bitcoin's bright future, especially considering that prices traditionally rise in the fourth quarter.
