Whales Boost Bitcoin Holdings as Retail Investors Exit Amid Market Correction

Large Bitcoin holders are steadily increasing their positions even as retail participation drops to yearly lows, signaling a familiar market dynamic during downturns. New data shows that wallets holding at least 1,000 BTC have climbed to a four-month high of 1,384, up 2.2% from 1,354 just three weeks earlier. This rise underscores growing confidence among institutional investors and long-term whales, who typically accumulate aggressively when prices weaken.

In contrast, wallets holding 1 BTC or less have fallen to 977,420—the lowest level in a year—after peaking above 980,000 in late October. This pattern mirrors previous market cycles where small investors capitulate during sharp corrections while experienced holders buy the dip.

Bitcoin recently experienced its third-largest drawdown of the current cycle, shedding over 25% from its all-time high. On Wednesday, the asset traded around $92,600 and fluctuated between $92,200 and $92,800 during the Asian session, reflecting sustained volatility as traders react to shifting support and resistance levels.

Several on-chain metrics indicate the market may be nearing a bottom. Only 7.6% of short-term holder supply is currently in profit—a level typically seen close to cycle lows—while the STH Realized Profit-Loss Ratio has dipped below 0.20, another signal historically associated with market turning points.

Market sentiment remains deeply bearish. The Crypto Fear & Greed Index has held at 11 for two consecutive days, and social media conversations are filled with pessimism and doubt about a swift recovery. Coinglass data also shows a persistent lean toward short positions, even as occasional optimism briefly surfaces.

Despite the negativity, analysts argue that extreme fear and rising whale accumulation can act as a contrarian indicator. Bitfinex reports signs of selling exhaustion, suggesting capital may be rotating within crypto instead of exiting entirely. Open Interest for BTC/USDT remains elevated at around 100K, implying strong participation even as prices fall.

Former Barclays CEO Bob Diamond views the turbulence as a healthy correction rather than a new bear market, noting that investors are still recalibrating risk across rapidly evolving tech-driven markets.

As Bitcoin searches for a late-2025 bottom, the widening gap between whale confidence and retail fear highlights a classic market setup. Whether institutional accumulation is strong enough to stabilize prices will become clearer in the coming weeks.