Bitcoin Sharks Lead Renewed Buying Amid Market Volatility
Bitcoin’s market dynamics have shifted as so-called “shark” wallets—those holding between 100 and 1,000 BTC—have aggressively accumulated coins, adding 65,000 BTC over the past seven days. This surge in buying coincides with Bitcoin’s price rebounding from two-month lows, according to data from onchain analytics provider CryptoQuant.
Sharks Boost Holdings to Record Levels
CryptoQuant’s analysis highlights that these mid-sized holders have increased their total BTC holdings to a record 3.65 million BTC. This accumulation occurred even as spot prices lingered near $112,000, suggesting that conviction-driven investors are capitalizing on short-term price weakness.
Contributor XWIN Research Japan noted that this buying pattern contrasts with the behavior of short-term holders (STHs), defined as wallets holding coins for six months or less, who have only recently moved back into profitability after a prolonged period of losses.
Short-Term Holders Begin to Profit
CryptoQuant’s spent output profit ratio (SOPR) metric for short-term holders turned positive last Friday, marking an important milestone after almost a month of STH coins moving onchain at a loss. This development indicates improving market sentiment among more speculative traders.
Long-Term Holders Remain Cautious
In contrast, long-term holders (LTHs) have not yet resumed net accumulation. Data shows a continued decline in LTH wallet balances over the past 30 days, reflecting sustained selling pressure reminiscent of the 2022 bear market.
Exchange Outflows Signal Growing Demand
Further supporting bullish fundamentals, Bitcoin exchange balances have declined, with net outflows dominating recent activity. This trend suggests that investors are increasingly transferring BTC into cold storage, reducing liquidity on exchanges and signaling stronger underlying demand.
Outlook: Potential for Next Upward Leg
While short-term price corrections cannot be ruled out, market observers see the current accumulation trends and declining exchange supplies as foundations for Bitcoin’s next significant price rally. XWIN Research Japan emphasized that despite retail-driven volatility, deeper structural demand appears to be strengthening.
However, the divergence in behavior among investor cohorts introduces some uncertainty. The cautious stance of long-term holders and whales could temper the pace of any sustained upward move.
Disclaimer: This article does not constitute investment advice. Cryptocurrency investments carry risks, and readers should perform their own due diligence.
FinOracleAI — Market View
The recent accumulation of 65,000 BTC by shark wallets signals renewed conviction among mid-sized holders, which may underpin a bullish phase in the near term. The positive shift in short-term holders’ profitability further supports improving market sentiment. However, persistent selling by long-term holders adds caution to the outlook. Investors should monitor exchange outflows and long-term holder activity closely for confirmation of a sustained trend reversal.
Impact: positive
