Whales Accumulate Bitcoin Amid Retail Investor Market Exit

• Bitcoin wallets with over 100 BTC increased by 135 in February, a 0.8% rise in significant holders.
• Smaller Bitcoin wallets have fallen 138,680, and retail investors may be exiting amid volatility.
• Bitcoin’s price stands at $98,473.32, having gained 0.32% in one day but dropping 6.48% over a week.

Bitcoin wallet distribution is changing, with larger investors purchasing and smaller investors cutting down positions. A recent tweet posted by Santiment (@santimentfeed) addresses this, with February having an increase of 135 wallets with over 100 BTC and a drop of 138,680 with less than 100 BTC. This action mirrors that when whales purchase, retail investors may sell, possibly out of concern for present price fluctuations in the marketplace.

Increase in Long-term Bitcoin Owners

The number of Bitcoin wallets holding over 100 Bitcoins grew 135 in February, a 0.8% rise. With this development, institutional investors and long-term investors are leveraging price fluctuations in a move to assemble larger portfolios. Historical trends have testified that when larger investors take a position in Bitcoin, it can make a difference in terms of liquidity and price-stabilizing factors.

Large investors will, in most instances, strategize in times of uncertainty, and in doing so, can influence supply dynamics. Institutional demand will build in such times when retail activity lessens.

Decline in Bitcoin retail investors

Meanwhile, the number of wallets with less than 100 BTC decreased by 138,680, down 0.3%. That decline could represent smaller investors offloading assets in preparation for heightened volatility or out of concern over assuming added risk.

Market fluctuations make retail investors sell assets or collect funds, particularly when faced with sharp price fluctuations. Reduced small wallets coincide with times in the past when uncertainty in the marketplace experienced fewer new entrants in trading activity.

Bitcoin Price Volatility and Trends

Bitcoin’s price was at $98,473.32 at the time of writing, having increased 0.32% over the last 24 hours but fallen 6.48% in a week. Wallet distribution change shows larger investors taking in assets, and that could drive future trends in the market.