Bitcoin's Rise: The Role of Whales and Small Investors

Recently, the volatility in Bitcoin (BTC) prices has attracted attention. The return of whales to buying has increased the interest of cryptocurrency investors, creating an expectation of a rise in the markets. According to Santiment’s on-chain data, December stood out as a period when large investors began accumulating again, positively affecting the price.

According to the data, whale and shark wallets holding between 10 and 10,000 Bitcoin collectively accumulated a total of 47,584 Bitcoin in December. This situation indicates that major players have changed their strategy following a selling period of 113,070 Bitcoin that occurred between October 12 and November 30. This rapid change in direction is creating an optimistic atmosphere in the markets.

Santiment states that the sudden buying activity of large wallets has given upward momentum to the Bitcoin price. However, the biggest obstacle to continuing this momentum appears to be the behavior of retail investors. While small investors try to buy as they see dip levels, the market outlook could quickly change if these wallets turn to selling.

The accumulation of Bitcoin by whales serves as a shield against small investors' selling decisions. Santiment's data shows that if retail wallets continue to buy instead of moving to sell, Bitcoin’s price could rise strongly, similar to September and early October. During this period, a similar accumulation was made, resulting in a significant price increase.

The market outlook presents a clear picture. As large investors buy, Bitcoin supply is quickly accumulating in these wallets. If the selling pressure from small investors decreases or this segment turns to selling, a new wave of increase for Bitcoin may become inevitable.