Bitcoin Sharks Increase Dominance as Whales Scale Back Their Holdings

Recent on-chain data reveals a shift in Bitcoin's market dynamics, as sharks—investors holding between 100 to 1,000 BTC—have been ramping up their purchases.

Analyst James Van Straten highlighted that the “Supply Dominance,” a metric by Glassnode tracking the percentage of the total BTC supply held by different groups, shows these sharks now represent a more significant portion of Bitcoin’s circulating supply.

Historically, whales (those holding over 1,000 BTC) have controlled the largest chunk of Bitcoin’s total supply, but their dominance has been gradually decreasing, with many selling off during the recent bull market.

The sharks, in contrast, have been increasing their position, pushing their share of the supply above 20%, a notable rise compared to other cohorts like the crabs, fish, and miners, who have remained relatively passive.

Meanwhile, smaller investors (referred to as shrimps) have been steadily purchasing, signaling growing retail interest.

Although these smaller holders don’t make a significant impact on the overall market, the buying spree from sharks could indicate more bullish momentum for Bitcoin.