Investor sentiment in the crypto market has plunged to its lowest level in months. Yet, major Bitcoin holders are using the downturn as a buying opportunity.
Wallets holding between 10 and 10,000 Bitcoin accumulated roughly 61,568 coins over the past 30 days, according to Santiment. This comes despite ongoing geopolitical tensions and volatility in traditional markets.
Smaller wallets - those with under 0.01 BTC - also increased holdings slightly, adding about 213 coins. Analysts note the contrasting motivations: institutional-grade investors are accumulating steadily, while small holders act on short-term momentum.
Dominick John of Zeus Research said large holders focus on long-term value, not daily price swings. He warned that overheated retail demand could trigger temporary selloffs before the next accumulation phase.
Historical patterns suggest that when big wallets buy and smaller ones sell, a sustained price rally may follow. Santiment labeled the trend a "promising sign" for a potential upward breakout.
Exchange outflows remain consistent, indicating coins are moving into long-term storage. However, not all whales are accumulating - some moved significant funds to exchanges on March 19, coinciding with Middle East conflict-driven market dips.
The Crypto Fear & Greed Index registered scores of 10 and 13, marking an extended period of extreme fear. The mood reflects deep uncertainty driven by Iran-related conflicts and broader macroeconomic instability.