Reports indicate a large volatility in Bitcoin holdings as the price swings damaged large wallets and invited smaller players back into the market.
According to Santiment, wallets holding between 10 and 10,000 BTC – the so-called “whale and shark” group – have reduced their share of total supply to a nine-month low, now around 68% after the latest wave of sales.
This withdrawal includes approximately -81,068 BTC withdrawn from those buckets in approximately eight days.
Whales Cut Stakes, Steps to Sell
The shopkeepers were an active group. Reports note that “shrimp” wallets – those holding less than 0.1 BTC – have risen to their highest share since mid-2024, now accounting for around 0.24% of the supply.
The pattern is familiar: large holders are exposed, small accounts pick up coins on dips. The result is a sharp price swing as the market balances.
Market Movement and Meaning
The action of the number pushed the story to be seen. Bitcoin dropped from the highs to the low $60,000s, briefly testing around $59,000 before a rebound took it back into the mid-$60k range.
The selloff coincided with problems in broader risk markets, and traders reacted quickly. Some of that selling pressure was seen in ETF and futures flows, while on-chain transfers showed large holders reducing positions while sales piled up.
🧐 What was the cause of the Bitcoin crash that saw prices drop to $60,001 for the first time since October, 2024?
🐳 Whale and shark wallets holding 10-10K Bitcoin now have a 9 month low of 68.04% of all $BTC provide. This includes dumping -81,068 BTC in… pic.twitter.com/Yyd20dy3nS
– Santiment (@santimentfeed) February 6, 2026
The sale seems to be related to both dangerous foods and time. A widely shared post on social media from CryptoQuant CEO Ki Young Ju drew attention to the situation among analysts, saying that almost all Bitcoin analysts were sounding bearish at the moment. That kind of consensus can push traders to take quick losses or close positions.
Sentiment Falls to Levels Last Seen in 2022
The general attitude has become stronger. The Crypto Fear & Greed Index dropped to 9 this week, a reading that sits within the “extreme fear” zone and has not been seen since the turmoil of mid-2022.
Low sentiment often strengthens currency and increases price movement. When fear is high, even small catalysts can lead to large reactions.
Why This Matters
When large owners cut back while many smaller accounts buy, the structure of the market changes. Liquidity can be tight in certain price bands, so dips can be deep and rallies can be quick if you buy returns.
History shows that these stages sometimes lead to an extended period of consolidation. Sometimes they mark the beginning of a major trend reversal. Currently, both are happening; clarity will come only after the flow and macro signals have stabilized.
Background Note
Some traders point to geopolitics and big news headlines as the start of the latest panic. Reports say a move to reduce global risk – including weak tech stocks and trade tensions – has weighed on crypto sales.
Even so, Bitcoin remains above most long-term fundamentals that traders watch. Many long-term owners have been strong buyers through previous pullbacks. That consistent buying could matter if fears subside and big investors start reinvesting.
Featured image from Pexels, chart from TradingView
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