Large Bitcoin holders have accumulated over 61,000 BTC in the past month despite escalating geopolitical tensions and deep investor uncertainty, according to onchain analytics firm Santiment.
Whales and sharks—defined as wallets holding between 10 and 10,000 Bitcoin BTC$68,495—have increased their holdings by 0.45%, adding 61,568 BTC over the past 30 days, Santiment said in a Thursday X post. Meanwhile, smaller wallets holding under 0.01 Bitcoin added 0.42%, or 213 BTC, during the same period.
The accumulation pattern has emerged against a backdrop of heightened conflict in the Middle East and broader macroeconomic uncertainty. Tensions escalated in February after the United States and Israel launched strikes against Iran, with Iran retaliating against several neighboring countries.
The whale accumulation figures align with recent data showing persistent Bitcoin exchange outflows throughout March, indicating that large holders are accumulating rather than positioning to sell. Santiment analysts suggested the trend could signal an eventual price breakout.
“Ideally, the ranging pattern will break upwards when large wallets are accumulating, while retail is dumping. This has historically been a very reliable pattern to signal the start of bull cycles,” the analysts said.
However, not all whales have been accumulating. On March 19, two Bitcoin whales moved tens of millions of dollars to exchanges as Bitcoin prices fell amid attacks on Gulf oil and gas infrastructure that deepened the Iran conflict. Energy prices jumped following the attacks.
Dominick John, an analyst at Zeus Research, told Cointelegraph that the accumulating whales are likely positioning ahead of a potential breakout. “Whales are scooping up BTC because they’re positioning ahead of a potential breakout, quietly stacking during consolidation periods,” he said.
John explained that smaller wallet holders are driven by different motivations. “Small wallets are chasing the momentum, driven by FOMO during uptrends and the fear of missing the next leg up,” he added.
The analyst noted that whale accumulation could continue if the current price range holds and macroeconomic conditions remain supportive. “Whales tend to buy in waves, so accumulation could continue if the range holds and macro conditions stay supportive. On the other hand, if retail FOMO overheats, we could see a pause or slight sell-off before the next accumulation phase,” John said.
Despite the whale accumulation, broader investor sentiment remains deeply negative. The Crypto Fear & Greed Index returned a score of 13 on Friday, firmly in “extreme fear” territory. Thursday’s score was 10, and both the prior week and the month of February averaged “extreme fear” ratings, according to the index.
The Fear & Greed Index measures market sentiment on a scale from 0 to 100, with readings below 25 indicating “extreme fear” and scores above 75 suggesting “extreme greed.” The sustained period of extreme fear reflects ongoing uncertainty about both cryptocurrency markets and broader geopolitical conditions.
The divergence between whale accumulation and retail sentiment suggests that sophisticated investors may be taking advantage of market fear to build positions at relatively lower prices. This pattern has historically preceded significant price movements, though the timing of such breakouts remains uncertain given the complex geopolitical and macroeconomic environment.
Bitcoin exchange outflows throughout March have provided additional confirmation that holders are moving coins off exchanges for long-term storage rather than preparing to sell. Exchange balances typically decline when investors are accumulating and rise when selling pressure increases.
More Reads:
UK Government Confirms Temporary Ban on Crypto Political Donations
Dollar-Cost Averaging vs Lump-Sum Investing in Crypto
If you’re reading this, you’re already ahead. Stay there, by joining the…
Discover more from Dipprofit
Subscribe to get the latest posts sent to your email.
