- Bitcoin whales added 240K BTC as prices rose from $25K to $ 103 K.
- Sell-side liquidity dropped to 120K BTC, tightening market supply.
- Long-term holders distributed 300K BTC as retail investors entered the market.
Bitcoin whales are accumulating at a pace not seen before, with over 240,000 BTC added to whale wallets since mid-2024. The price of Bitcoin has nearly quadrupled within the same period, crossing $100,000 by January 2025 amid a significant decline in market supply and sell-side liquidity.
Whale Wallet Growth Signals Institutional Anticipation
According to a post by Vivek, whale wallets holding over 100 BTC began increasing rapidly in mid-2024, shortly after Bitcoin reclaimed the $25,000 level. The number of such addresses surged from 16,700 in July to over 18,500 by January 2025, marking the steepest six-month accumulation trend on record. This period coincided with Bitcoin’s price rising from $25,000 to just under $100,000, underlining a tight correlation between large-scale buying and price acceleration.
The accumulation trend reflected a deliberate strategic positioning by deep-pocketed players. Vivek noted this is “not just noise,” suggesting whales are front-running major institutional catalysts such as spot ETF approvals and evolving regulatory clarity. As Bitcoin prices surged, whale holdings increased by an estimated 240,000 BTC, over $24 billion at recent prices, intensifying bullish momentum across the digital asset market.
Bitcoin Supply Constraints Intensify Bullish Sentiment
Sell-side liquidity dropped from 450,000 BTC in 2021 to 120,000 BTC by early 2025, driven by declining U.S. exchange balances and miner sell-offs. This shift toward self-custody, coupled with only 19.86 million BTC in circulation, reinforces scarcity-driven valuations. Institutional demand is pushing Bitcoin’s market cap to $2.06 trillion, with a fully diluted valuation of $2.18 trillion as of May 16.
Long-Term Holders Begin to Distribute as Retail Enters
Whales are accumulating while long-term holders (LTHs) distribute, with LTH supply dropping from 14.3M to under 14M BTC between mid-April and May 2025 during Bitcoin’s rally from $60K to over $ 100 K.
The binary spending indicator consistently flashed red, signaling active distribution. This shift suggests inter-institutional rotation rather than exits, as LTH’s cost basis rose to $25K, maintaining profitability. Ongoing LTH distribution into bullish momentum could increase short-term volatility as less disciplined retail investors enter.
Bitcoin Breakouts Confirm Institutional Demand and Supply Squeeze
Bitcoin’s six-hour chart shows three reaccumulation zones between $83K and $105K, each lasting a week. Every breakout added around $10K, with volume rising and support levels holding, according to Daan Crypto Trades.
Current range sits between $101K–$105K with low volatility and tight spreads. Trading volumes remain high, confirming steady institutional demand and positioning near resistance.
Bitcoin rose 1.91% to $103,839.62 on $50.59B daily volume, per CoinMarketCap. Price briefly dipped below $102K before bouncing post-6:00 PM on buy pressure and a liquidity squeeze.
Circulating supply stays fixed at 19.86M, reinforcing the ongoing BTC supply shock. Demand from institutional and retail investors continues driving aggressive bids amid declining available float.
