On-chain data reveals a notable shift in Bitcoin ownership patterns as the price stabilizes near $71,000. According to analysis from crypto sentiment platform Santiment, large wallet holders—often referred to as “whales”—have resumed accumulation, a development interpreted as a potentially bullish signal for the market.
Santiment’s report, published this weekend, highlights wallets holding between 10 and 10,000 BTC. These entities now control 68.17% of the total Bitcoin supply, a measurable increase from 68.07% just one week prior. “Their recent shift to accumulation is a bullish signal,” the firm stated, calling the change “a positive reversal” from recent selling pressure.
Whale Accumulation vs. Retail Sentiment
The dynamics between large and small holders are central to Santiment’s analysis. The platform suggests a potential local market bottom could be forming if the trend of whale accumulation continues while the share held by retail investors (smaller wallets) declines.
“Ideally, we want to see small wallets (retail) drop while this group rises, signaling a transfer of coins from weak hands to strong hands,” Santiment explained. This perspective is rooted in historical market behavior, where peaks in retail buying enthusiasm often coincide with local tops, while bottoms have typically formed when everyday investors capitulate and sell.
Interestingly, current retail activity does not yet show this capitulation. Meanwhile, the Crypto Fear & Greed Index, a popular sentiment gauge, remained in “Extreme Fear” territory at a reading of 16 on Sunday, indicating pervasive caution among market participants despite the price holding firm. Bitcoin was trading at approximately $71,350 at publication, up 6.30% over the prior week and 7.55% over the last month.
This accumulation trend marks a swift reversal from less than two weeks ago. Santiment reported on March 6 that whales had sold 66% of the Bitcoin they had purchased between February 23 and March 3, a period that coincided with Bitcoin’s rally past $70,000 and a brief touch near $74,000.
Why the “Crowd” Matters for Market Bottoms
Despite the bullish whale activity, Santiment urges caution. The persistence of retail optimism is framed as a key argument against a confirmed market bottom. “Historically, markets tend to bottom when the ‘crowd’ loses hope. The persistence of retail optimism is currently the biggest argument against a confirmed bottom,” the report noted, adding that “Markets rarely reward the majority consensus immediately.”
This view aligns with that of independent on-chain analyst Willy Woo, who recently commented that Bitcoin remains “solidly in the middle of its bear market through a lens of long-range liquidity.”
Institutional Flows Show First Weekly Inflows of 2026
Adding another layer to the institutional picture, U.S. spot Bitcoin exchange-traded funds (ETFs) recorded their first five-day consecutive inflow streak of 2026 this week, attracting approximately $767.32 million. This influx of institutional capital provides a contrasting narrative of growing professional investor interest, even as retail sentiment metrics remain fearful.
The interplay between these divergent signals—whale accumulation, fearful retail sentiment, and budding institutional inflows—highlights the complex, multi-faceted nature of the current Bitcoin market. While the shift in large holder behavior is a constructive data point, analysts stress that a definitive bottom typically requires a broader surrender of hope from the retail investor base, a condition that has not yet materialized.
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