Whales and Bitcoin (BTC) sharks continue to accumulate for the ninth consecutive day, while smaller retail investors reduce their exposure. According to the analytical platform Santiment, such behavior of smart money signals "optimal conditions" for a potential price breakout.
This divergent behavior of large and small holders occurs during increased volatility. Bitcoin has erased almost all of this year's gains from 2026.
Smart money builds positions in Bitcoin as retail investors exit the market.
After a tough end to 2025, the new year started positively for Bitcoin. The cryptocurrency rose by over 7% in the first five days of January due to a renewed wave of optimism in the risky asset markets. However, this was short-lived as market instability quickly returned.
Despite a brief rebound last week, the broader market situation has worsened again after US President Donald Trump announced tariffs on 8 countries in the European Union (EU). This was the main reason for the return of uncertainty. Additionally, this news put pressure on risky assets and contributed to another decline in the crypto market.
Data from BeInCrypto Markets shows that BTC fell by 6.25% over the past week. Moreover, yesterday the price dropped below the $88,000 level for the first time since the beginning of the year.
At the time of writing this text, the largest cryptocurrency was trading at $89,329, having fallen by 3.31% in the last 24 hours.
Despite volatility, whales and sharks are still increasing their exposure. Data from Santiment indicates that wallets holding between 10 and 10,000 BTC acquired 36,322 coins over the past nine days. This amounts to $3.2 billion at current market prices. This indicates a 0.27% increase in smart money holdings.
This accumulation trend sharply contrasts with the behavior of retail investors. Small holders sold 132 coins over nine days, marking a decrease in their total holdings by 0.28%.
Typically, this means that weaker players sell during declines while smart money buys the dips. In the post, the analytics platform Santiment wrote:
"Optimal conditions for a breakout in the crypto market occur when smart capital accumulates while retail sells. Setting aside geopolitical factors, this pattern continues to create a long-term bullish divergence."
It is worth noting that despite accumulation by 'smart money', forecasts regarding Bitcoin are divided. Some market observers claim that Bitcoin is showing bearish market signals, increasing the risk of further declines. Others point to new indicators that support the thesis of a long-term rebound.
At this moment, Bitcoin's sensitivity to overall macroeconomic factors remains a key issue. The further development of the situation depends on global risk sentiment and will indicate whether the asset will continue to weaken or begin to regain strength.
To read the latest cryptocurrency market analysis from BeInCrypto, click here.
