What You Need to Know
- Glassnode data shows that whales resumed accumulation for the first time since August 2024, signaling confidence at current price levels.
- The overall market still distributing, though, with an Accumulation Trend Score of just 0.15 keeping downward pressure on price.
Current Market Sentiment
Prices remain under pressure, and sentiment is so weak that it feels reminiscent of 2022. However, for the first time in nearly a year, Bitcoin (BTC) whales are actively buying again.
After months of selling as Bitcoin escalated to a record high above $109,000, whales—wallets containing 10,000 BTC or more—are making significant purchases as prices fall to around $80,000, according to data from Glassnode.
Increased Whale Activity
The last notable accumulation by whales occurred in August 2024 when Bitcoin was priced between $50,000 and $60,000 as the yen carry trade was unwinding. Known as “smart money,” whales typically buy during significant price corrections and sell during market upswings—this pattern has been consistent over the past eight months.
Despite this uptick in whale purchases, the broader market remains bearish, with Bitcoin down 25% from its peak. The Accumulation Trend Score from Glassnode, which monitors activities of various wallet types over a 15-day period, reveals that most investor categories continue to sell rather than buy.
A score approaching 1 indicates accumulation, while a score near 0 suggests distribution. As the overall market score sits at just 0.15, selling pressure persists. This indicates that while whales are starting to buy, broader market sentiment still trends bleak, potentially exerting further downward pressure on prices at least in the short term.
