Bitcoin Sharks Increase Holdings Amid Market Volatility

According to Cointelegraph, Bitcoin 'shark' wallets have significantly increased their holdings, acquiring 65,000 BTC in just one week as the cryptocurrency's price rebounds from recent lows. This activity highlights a strategic move by these large holders, who possess between 100 and 1,000 BTC, to capitalize on lower prices. Data from CryptoQuant reveals that these 'sharks' have expanded their market exposure by adding 65,000 BTC, bringing their total holdings to a record 3.65 million BTC. This buying spree occurs despite Bitcoin's spot prices hovering around $112,000, indicating a disconnect between retail-driven volatility and deeper structural demand. The recent market dynamics underscore a divide between short-term traders and larger, conviction-driven buyers. Short-term holders (STHs), who typically hold Bitcoin for six months or less, have seen their spent output profit ratio (SOPR) begin to turn positive after a period of losses. This shift suggests a potential change in market sentiment among these speculative traders. Meanwhile, declining exchange balances point to increased buyer demand, as net outflows indicate that investors are moving their coins into cold storage rather than keeping them liquid for trading. While further price corrections are possible, the underlying market structure appears robust, laying the groundwork for Bitcoin's next upward movement. Despite these developments, the situation remains precarious for some Bitcoin investor groups. As previously reported by Cointelegraph, whales and long-term holders have mirrored the selling patterns seen during the 2022 bear market, particularly throughout August. CryptoQuant data shows that long-term holder (LTH) wallet balances have yet to recover, with the rolling 30-day balance change still in negative territory. This ongoing trend suggests that while some investors are accumulating, others remain cautious, reflecting the complex dynamics at play in the current Bitcoin market. Readers are reminded that this article does not offer investment advice, and all trading decisions should be made based on individual research and risk assessment.