Bitcoin whales change strategy: Accumulation halted, selling in full swing

The crypto market appears to be in a new phase, according to data from Glassnode. According to data from the blockchain analytics firm, current trends show that optimism is waning and major market participants are adjusting their strategies. This process, referred to as a distribution phase, involves important changes.

Large Bitcoin holders stop accumulating

The distribution phase is confirmed by Glassnode’s accumulation trend score, an indicator that measures how large entities are handling their BTC holdings. The score currently stands at 0.21, which indicates that large holders, so-called whales, have stopped their buying behavior and are starting to sell instead.

This change follows a period of accumulation between October and December, when many institutional players increased their Bitcoin holdings. Whales holding over 10,000 BTC have been steadily taking profits since September. Holders with 1,000 to 10,000 BTC have also shown more activity on the selling side in recent weeks.

Impact on the market

These sales directly impact supply on trading platforms, causing downward pressure on the Bitcoin price. The crypto markets have already lost $390 million in value during the recent correction in recent days. It is difficult to say whether the worst is now behind us. Analysts predict that depending on the selling pressure, prices could fall even further.

Although institutional players like MicroStrategy continue to buy, this does not seem to be enough to keep the market in an accumulation phase. This illustrates a broader uncertainty about the crypto market. This uncertainty has mainly increased following unfavorable figures about the US economy, which fueled concerns about more inflation last week.

The market movements suggest that the crypto world is preparing for a period of volatility. Although previous accumulation phases were often followed by price increases, it is unclear whether this will also be the case now. What is certain is that the major players are currently shifting their focus to limiting risk.

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