Bitcoin Whales Accumulate as Retail Takes Profit, Data Shows

Bitcoin’s on-chain data is showing a clear split between large holders and small investors. While retail traders were seen taking profits after the early-January rally, whales were moving in the opposite direction. According to data from Santiment, this divergence has historically increased the probability of bullish market conditions.

With Bitcoin trading above $93,000 at the time of Santiment’s data release, many retail investors were observed reassessing their positions by calculating Bitcoin profits following the recent move higher. That reassessment appeared to drive profit-taking among smaller wallets, even as larger holders continued to increase exposure.

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Addresses holding between 10 and 10,000 BTC accumulated more than 56,000 coins between mid-December and early January. At the same time, wallets with less than 0.01 BTC started selling, suggesting fear of a short-lived rally rather than a sustained move higher.

Retail Traders Took Profits After The Rally

Small Bitcoin holders shifted into selling mode when Bitcoin briefly went higher in early January. After Bitcoin pushed above $93,000, many retail investors chose to lock in gains rather than increase exposure.

This behavior reflected growing concern that the recent price strength could be a bull trap. Retail traders appeared skeptical that higher levels would hold, especially after the sharp moves seen in the preceding weeks. As a result, wallets with minimal BTC balances contributed to selling pressure during that period.

Santiment, in the data-packed tweet, noted that this behavior marked a change from mid-December, when retail activity was more mixed and lacked a clear trend. The recently concluded rally seemed to have been the catalyst for profit-taking.

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Bitcoin Whales Absorb Selling Pressure

While retail investors exited positions, creating a dip, large Bitcoin holders continued to accumulate. Wallets holding 10 to 10,000 BTC added 56,227 coins since December 17, even during periods when prices moved sideways.

Santiment classified this pattern as one of the most bullish configurations in its framework. Whale accumulation combined with retail distribution had often preceded further market capitalization growth across crypto assets.

The data suggested that large holders were comfortable absorbing selling pressure at those price levels. This steady buying contrasted sharply with retail hesitation and signaled confidence from investors with longer time horizons.

What This Means For Retail Investors

Historically, periods where Bitcoin whales accumulate while retail sells have favored the upside. However, Santiment also cautions that favorable probabilities do not guarantee outcomes. These bullish phases can last days or weeks, and whale behavior can shift quickly if conditions change.

For retail investors, the key takeaway is not to blindly follow either side. The current setup suggests strength beneath the surface, but risk management remains critical. Monitoring the gap between whale accumulation and retail selling can provide useful context, especially during volatile market phases.

For now, Bitcoin’s market structure appears supportive. Whether retail investors choose to re-enter or stay cautious may depend on how long this divergence persists.