- Retail Bitcoin holders decline, with addresses holding 0-1 BTC dropping from 1.43M to 1.38M, indicating reduced small investor interest.
- Large Bitcoin outflows from exchanges suggest ongoing whale accumulation, potentially tightening supply and influencing price trends.
- Bitcoin spot ETFs saw $341M in inflows on Feb. 4, with BlackRock’s IBIT leading at $249M, showing strong institutional demand.
At press time, Bitcoin was trading at $98,609.78, a 0.95% drop in a day and a 3.20% decline over the past week. Its market cap is at $1.95 trillion, while trading volume has dropped by 19.34% to $63.74 billion. The overall crypto market cap is at $3.21 trillion, with increased buying volume balancing market dips. However, further growth may need a new catalyst.
Retail Investors Reduce Holdings
According to analyst Ali, retail investors are not aggressively buying BTC. The number of addresses holding between 0 and 1 BTC continues to decline, suggesting lower participation from small holders.
BTC’s price has remained volatile, reaching peaks near $100K before having corrections. Wallets holding between 0-1 BTC have dropped from approximately 1.43 million to 1.38 million. The trend indicates a redistribution of BTC holdings.
Retail investors may be reducing exposure as prices rise. BTC’s ability to hold above $100K is yet to be seen, as sustained demand is needed to maintain upward momentum. If retail accumulation resumes, it could strengthen Bitcoin’s long term position.
BTC Strong Outflows
Bitcoin inflows and outflows across exchanges show the ongoing accumulation trends. Data from Coinglass shows that BTC’s price has been steadily increasing since mid 2023, up from $43,520 in April to recent highs of $116,570.
Large outflows from exchanges coincide with price surges, suggesting accumulation by long term holders or institutions.CryptoQuant data indicates that whale accumulation addresses recently received over 30,000 BTC, a pattern often associated with over the counter (OTC) purchases.
This movement suggests continued interest from Bitcoin whales. Sustained net outflows have been visible from mid November 2023 to early 2024, correlating with BTC’s rise past $90K. Whale Alert reported a recent transfer of 1,042 BTC, worth approximately $102.62 million, from Cumberland to Coinbase Institutional.
Such transactions can indicate strategic movements by large holders, potentially affecting liquidity and market trends. If outflows continue, BTC’s available supply on exchanges may redce leading to a bullish outlook.
Bitcoin ETFs See Strong Inflows
Institutional interest in Bitcoin is strong, as shown in spot ETF inflows. According to SosoValue, Bitcoin spot ETFs recorded a total net inflow of $341 million on February 4. BlackRock’s ETF IBIT received $249 million.
These inflows show sustained institutional confidence in Bitcoin, despite retail investors actions. The market’s next move depends on whether BTC can sustain its current levels or face further corrections driven by profit taking and exchange activity.
