Bitcoin Whales Scale Back: Average Holdings Reach Six-Year Low

Recent on-chain analysis reveals that the average Bitcoin whale's holdings have dwindled to levels not seen since 2018, potentially signaling bearish sentiment for the cryptocurrency's price.

Average Bitcoin Whale Now Holds Just 488 BTC

A recent analysis shared on social media by a prominent blockchain data firm sheds light on the evolving landscape of Bitcoin whale holdings. The firm categorizes "whales" as entities possessing between 100 and 10,000 BTC. At current market rates, this translates to a range of approximately $11.2 million to $1.1 billion.

This classification inherently targets high-net-worth investors and institutional players, whose actions can significantly influence market dynamics. While the total holdings of this group are often scrutinized, such metrics can be skewed by the outsized impact of the largest holders within the range.

To gain a more nuanced understanding of whale behavior, analysts focus on the average holdings per entity within this cohort. The blockchain data firm shared a graph illustrating this metric's trajectory over recent years.

The chart reveals that average whale holdings peaked in early 2022 before entering a decline as bearish sentiment gripped the market. This suggests a reduction in exposure to the digital asset during the downturn.

As 2023 ushered in a recovery for Bitcoin, whales cautiously began accumulating again, albeit at a slower pace compared to the previous cycle. This trend continued until mid-2024, at which point another reversal occurred.

Curiously, subsequent price rallies have not been supported by whale accumulation. Instead, these large holders have accelerated their selling, particularly during the late 2024 surge.

Currently, the average Bitcoin whale holds a mere 488 tokens, marking the lowest level since December 2018 – a near seven-year low.

In a separate post, the analytics firm also examined Ethereum whale behavior, specifically focusing on "mega whales" holding over 10,000 ETH (valued at approximately $44.6 million).

The data indicates that Ethereum mega whales participated in buying during the recent price uptick. However, their accumulation has since stalled, with the 30-day change in their balances now hovering around zero.

BTC Price Action

As of this writing, Bitcoin is trading in the vicinity of $111,900, showing a modest gain of over 1% in the past 24 hours.

Caution: This information is provided for educational purposes only. Historical performance does not guarantee future results.