Bitcoin Selling Slows as Ether Whales Accumulate Amid Ongoing Market Weakness

Bitcoin and Ether are showing early signs of a shift in investor behavior, even as broader market conditions remain weak. Long-term Bitcoin holders are easing selling pressure, while large Ether holders are adding to their positions. Prices, however, remain under pressure amid caution, macro risks, and year-end positioning.

Holder Activity Points to Diverging Trends in Bitcoin and Ether

Bitcoin wallets holding coins for at least 155 days have reduced their balances steadily over the past six months. Holdings declined from about 14.8 million BTC in mid-July to roughly 14.3 million by December. That pace of selling now appears to be slowing. Crypto investor Ted Pillows noted that long-term holders stopped selling for the first time since July, raising expectations of a short-term relief rally.

Large holders often play an important role in shaping market trends. Their activity can influence liquidity, sentiment, and near-term price movements. A pause in selling by long-term Bitcoin investors may help limit downside pressure, even if broader market conditions remain uncertain.

As Bitcoin selling eases, Ether whales are moving in the opposite direction. Data from CryptoQuant, cited by analysts at Milk Road, shows large Ethereum holders added about 120,000 ETH over the past week. 

Addresses holding more than 1,000 ETH now control nearly 70% of the total supply, a share that has been increasing since late 2024. Analysts said continued accumulation suggests the market may not fully reflect the expectations of large investors.

BTC Faces Key Test as Year-End Positioning Limits Buying Interest

Former BitForex CEO Garrett Jin also pointed to shifting capital flows. He observed that gains in metals such as silver, palladium, and platinum appear to be losing momentum, with funds beginning to move back into crypto markets, including Bitcoin and Ether.

Several factors are shaping current market conditions:

• Long-term Bitcoin holders have paused selling after months of steady distribution.
• Ether whales are increasing their share of total supply through recent buying.
• Trader sentiment remains cautious following volatile holiday trading.
• High leverage levels continue to add downside risk during price swings.
• Year-end portfolio rebalancing is limiting strong buying interest.

Bitcoin traded between $86,744 and $90,064 over the past week. Analysts at Santiment reported that prices rose during the Christmas period even as fear, uncertainty, and doubt increased. After briefly moving above $90,000, Bitcoin fell back below $87,000, leading traders to reduce exposure again. Santiment added that such moves often run counter to prevailing sentiment.

Market watchers also cited leverage, geopolitical tensions, and macro uncertainty as factors weighing on prices. Technical indicators suggest recent multi-month corrections may be resetting conditions for a potential rebound early next year. Still, Bitcoin needs to rise more than 6% to avoid a rare negative annual close following a halving event.

Selling pressure from US-based traders may also be affecting prices. CoinGlass data shows the Coinbase Bitcoin Premium Index has remained negative, signaling weaker demand on US exchanges. A negative reading often signals reduced risk appetite and a more defensive investor stance, adding another challenge to any near-term recovery.