Bitcoin whales have been selling for four years: nearly 1 million BTC redistributed

Large Bitcoin holders have been significantly reducing their positions over the past four years. Whales holding more than 1,000 BTC currently control a combined 7.19 million Bitcoin, almost a million less than the peak of more than 8.1 million BTC reached in February 2022. That Bitcoin has since ended up in the hands of addresses with fewer than 1,000 BTC, which points to a clear shift in the behaviour of the market’s largest players.

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In brief:

• Whales holding more than 1,000 BTC now collectively own 7.19 million Bitcoin, almost a million less than the peak in February 2022.
• The freed-up Bitcoin has ended up in smaller addresses holding fewer than 1,000 BTC.
• Bitcoin is trading around $85.585, down 0.7% over the past 24 hours.

Nearly a million BTC moved to smaller holders

According to data from Alphactal, shared by analyst joao_wedson on X, the combined holdings of whales currently amount to 7.19 million BTC. That is a substantial decline from the record of more than 8.1 million BTC registered in early 2022.

The nearly one million Bitcoin that large holders have divested has ended up in addresses holding fewer than 1,000 BTC. This pattern points to a gradual redistribution of Bitcoin from the largest to smaller parties, a development that has unfolded over several years.

What the chart shows

The chart shows two lines: the total holdings of whales (orange) and the Bitcoin price (white). Both moved in tandem for a long time, but after the 2022 peak the orange line embarked on a clear downward trend while the price recovered.

At present, Bitcoin stands at around $85K, a slight decline of 0.7% over the past 24 hours. Despite the price recovery seen recently, whale holdings therefore remain structurally lower than four years ago.

Broader context: demand and distribution

The redistribution of Bitcoin from large to smaller holders is often seen by analysts as a sign of a maturing market, in which ownership becomes more widely distributed. Whether that has an effect on the price in the short term is another question.

Earlier this week, it already became clear that demand is lagging behind the price recovery, which makes the situation surrounding large holders especially relevant for those trying to gauge the direction of the market.