Bitcoin (BTC) whales and shark holders have continued to accumulate over the past nine days, even as smaller retail investors reduce their exposure, signaling what Santiment describes as “optimal conditions” for a potential breakout.
This divergence between large and small holders comes amid heightened volatility, with Bitcoin erasing nearly all its 2026 gains.
Smart Money Builds Bitcoin Positions as Retail Investors Exit
After a challenging end to 2025, the new year began on a positive note for Bitcoin. The cryptocurrency gained more than 7% in the first five days of January, supported by renewed optimism across risk assets. However, the momentum was short-lived, as market turbulence soon returned.
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Despite a brief recovery last week, broader market conditions deteriorated again after US President Donald Trump announced tariffs targeting 8 nations in the European Union (EU), sparking renewed uncertainty. The news pressured risk assets and contributed to another downturn in the crypto market.
BeInCrypto Markets data showed that BTC has declined by 6.25% over the past week. Yesterday, it fell below the $88,000 level for the first time since the beginning of the year.
At the time of writing, the largest cryptocurrency was trading at $89,329, down 3.31% over the past 24 hours.
Despite the volatility, whales and sharks have continued to increase exposure. Data from Santiment shows that wallets holding between 10 and 10,000 BTC have acquired 36,322 coins, worth $3.2 billion at current market prices, over the past nine days. This marks a 0.27% increase in holdings for large investors.
This accumulation trend contrasts sharply with retail investor behavior. Small holders sold 132 coins over nine days, a 0.28% decline in their collective holdings.
Typically, this indicates that weaker hands leave during price dips, while more experienced investors buy the dip.
“Optimal conditions for a crypto breakout are when smart money accumulates, and retail dumps. Geopolitical issues aside, this pattern continues to great a long-term bullish divergence,” the post read.
Notably, despite smart money accumulation, the outlook for Bitcoin remains divided. Some market observers argue that Bitcoin is flashing bear market signals, increasing the risk of further downside. Others point to emerging indicators that support the case for a longer-term recovery.
For now, Bitcoin’s sensitivity to broader macroeconomic developments remains a key factor to watch. Whether the asset continues to trend lower in the near term or begins to regain strength will likely depend on how global risk sentiment evolves.
