Bitcoin Sees Slump in Short-Term Investor Activity as Whales Go on Buying Spree

▲ Bitcoin (BTC)

Bitcoin (BTC), the leading cryptocurrency, has recently experienced sharp price volatility. Buying activity from short-term investors has noticeably weakened in the Bitcoin market, spreading caution throughout the market. In contrast, whales controlling massive capital have been increasing their holdings during the downturn, drawing attention for their moves that diverge from retail investors.

On Feb. 18 (local time), cryptocurrency media outlet CryptoPotato reported, citing data from on-chain analytics platform Alphractal, that changes in the net positions of short-term Bitcoin holders have recently slowed sharply. According to the report, Bitcoin surged past $126,000 in early October before plunging to around $60,000, and is currently trading near $67,000. Despite these brutal price swings, many participants are still accumulating assets, though the pace of accumulation by short-term investors has slowed markedly compared to 90 days ago.

Joao Wedson, founder of Alphractal, noted that despite additional accumulation by institutions such as Strategy, demand momentum among short-term investors is weakening. Wedson advised that the market should not be judged solely on the isolated movements of a few institutions, and that analyzing the entire Bitcoin blockchain is necessary to gauge real demand. Historically, weakening short-term demand momentum has often preceded periods of sideways movement, heightened volatility, or broader structural changes in the market.

However, the behavior of whales tells a completely different story from that of short-term investors. According to crypto analytics firm CryptoQuant, whale Bitcoin accumulation has increased by more than 200,000 BTC recently. Although growing whale inflows to exchanges may appear to heighten short-term selling pressure, their total holdings have steadily increased from a mid- to long-term perspective.

In fact, the amount of Bitcoin held by whales hit a low on Dec. 15 after a sharp decline, but has reversed course over the past month, rising 3.4%. During this period, whale holdings climbed from approximately 2.9 million BTC to more than 3.1 million BTC. This large-scale accumulation is comparable to the market correction in April 2025, when Bitcoin surged from $76,000 to $126,000.

Bitcoin is currently hovering about 46% below its most recent all-time high. Whales are using the current downturn as an opportunity to buy at lower prices, absorbing selling pressure while retail investors remain gripped by fear and stay on the sidelines. As retail sentiment weakens and major capital quietly repositions, investors worldwide are watching closely to see whether the market could enter another powerful rebound cycle.

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