Large market participants in the crypto industry seem to have capitalized on the recent market dip by snapping up Bitcoin at discounted prices. On-chain data supports the claim, showing that the large players received massive inflows on February 5th.
Bitcoin clocked a new all-time high of $109,114 on 20th January 2025. However, the crypto asset has dipped significantly since then. According to data from crypto data aggregator CoinMarketCap, the crypto asset is down 12.39% from its all-time high price and is trading at $95,301 at the time of this publication.
Whales accumulate Bitcoin despite the asset’s falling prices
The recent meltdown has sparked a buying frenzy among whales and large market participants. On-chain data from data science company IntoTheBlock shows that whales have been buying Bitcoin as the asset’s prices slid below $100k.
🐳 #Bitcoin whales accumulated nearly $3.8B in $BTC during the recent dip, with a net inflow of ~40K BTC recorded on Feb 5. pic.twitter.com/f1Xp5VyaNY
— Farhat HN 🇩🇪 (@farhat_hn) February 13, 2025
The data shows that crypto whales are bargain-hunting Bitcoin as they accumulated about $3.8 billion in BTC during the recent meltdown. The large players accumulated about 40,000 Bitcoin on February 5th alone as Bitcoin traded at $97.7k.
On this day, U.S. BTC exchange-traded funds witnessed positive flows. According to data from U.S. spot Bitcoin ETF tracking website Sosovalue, the ETFs registered positive flows worth $340 million and $66 million on the 4th and 5th of February respectively after recording negative flows worth $234 million on the 3rd of February.
The netflows witnessed on February 5th marked the highest levels of netflows since the year began. The netflows on this day are also higher than those witnessed since November 18th, as 2024 was coming to a close.
The catalyst behind the recent crypto selloff seems to be concerns over the escalating U.S. trade war with different countries. The uncertainty has sparked volatility in global financial markets including the crypto industry. Despite the trade war uncertainty, Bitcoin’s long-term fundamentals remain strong, and historical patterns suggest that these fear-driven dips often present prime accumulation opportunities for large market participants.
Large players are buying Bitcoin while retail investors are cashing out
A post dated February 3rd from popular crypto analyst Axel Adler shows large players are actively buying BTC while small players and retail investors are cashing out. The analyst referenced a chart from on-chain data analytics platform CryptoQuant which showed that retail investor holdings have significantly declined since November 2024 as larger investor holdings rose simultaneously.
Smaller traders and retail investors may be worried about the dipping crypto prices in the short term. However, historical data suggests that such sell-offs often pave the way for a strong recovery.
Whales increasing their buying power at lower prices typically indicates confidence in Bitcoin’s long-term potential and signals a possible bottom formation. If BTC reclaims the $100K price and establishes it as support in the coming weeks, a bullish rally toward new highs could follow. Despite the short-term trend remaining bearish, smart money positioning suggests that the market could soon shift back into bullish territory.
CryptoQuant data suggests miners are capitulating
Additional insights from CryptoQuant show that miners are capitulating. According to CryptoQuant, capitulating BTC miners implies that the digital asset could be portraying optimal entry zones for both mid-term positioning and long-term accumulation. CryptoQuant highlighted that Hash Ribbons flashing in the past have paved the way for a Bitcoin Rally and could imply the asset’s value could continue rising.
Despite the crypto market’s rocky February start, many believe that Trump’s administration will foster the growth of the industry. Discussions on establishing a strategic Bitcoin reserve for the U.S. Treasury are already underway at the federal level and have already trickled down to individual states.
Recently, New Mexico filed Senate Bill 275 (SB 275), dubbed the “Strategic Bitcoin Reserve Act” through Senator Anthony Thornton. The bill proposed establishing a Bitcoin reserve from a 5% allocation from public funds, including the grant permanent fund and severance tax permanent fund.
