Bitcoin’s Biggest Whales Pull Back—Still Control 68% of Supply

The whales are swimming away—but they still own the ocean.

Bitcoin's largest holders have started to trim their positions, according to fresh on-chain data. Yet despite the pullback, a concentrated group continues to command a staggering 68% of the entire Bitcoin supply. That's enough to move markets with a single trade—or spook them with a single sell order.

Decentralization? More like a digital oligarchy.

This isn't your average portfolio rebalance. When the biggest addresses—often tied to exchanges, funds, and early miners—shift their stacks, the entire network feels the tremor. Liquidity tightens. Volatility spikes. And the myth of a democratized asset gets another reality check from the cold, hard math of blockchain forensics.

The 68% figure is the real headline. It means the vast majority of Bitcoin isn't in the hands of 'HODLers' on Reddit, but parked in vaults belonging to a few key players. Their recent selling might signal profit-taking, risk management, or a simple rotation—but their enduring dominance signals control.

For the true crypto-believer, this is a feature, not a bug. Concentration means stability among giants, they argue. For the skeptic, it looks a lot like the traditional finance system crypto promised to dismantle—just with better encryption and worse coffee at the meetings.

One cynical finance jab? This is the ultimate 'smart money' move: create a decentralized narrative, accumulate most of the asset, then watch the retail crowd buy the dream while you control the underlying reality. Classic.

So, the whales are taking some chips off the table. Don't mistake it for a retreat. They still own the casino.

Whales Cut Stakes, Retail Steps In

Retail buyers have been the active counterparty. Reports note that “shrimp” wallets — those holding less than 0.1 BTC — climbed to their highest share since mid-2024, now accounting for roughly 0.24% of supply.

The pattern is familiar: large holders pare exposure, smaller accounts pick up coins on dips. The result is sharper swings in price as the market rebalances.

Market Moves And What They Mean

Price action pushed the story into view. Bitcoin slid from higher levels into the low $60,000s, briefly testing roughly $59,000 before a rebound pushed it back toward the mid-$60ks.

The sell-off coincided with troubles in broader risk markets, and traders reacted fast. Some of that selling pressure showed up in ETF flows and futures, while on-chain transfers hinted that big holders were reducing positions while retail piled in.

What’s been behind the Bitcoin crash that has seen prices fall to as low as $60,001 for the first time since October, 2024?

Whale and shark wallets holding 10-10K Bitcoin now hold a 9-month low 68.04% of the entire $BTC supply. This includes a dump of -81,068 BTC in just… pic.twitter.com/Yyd20dy3nS

— Santiment (@santimentfeed) February 6, 2026

The sell-off looks tied to both risk appetite and timing. One widely shared post on social media from CryptoQuant CEO Ki Young Ju called attention to the mood among analysts, saying that practically all Bitcoin analysts were sounding bearish at the moment. That kind of consensus can push traders toward taking quicker losses or closing positions.

The broader mood has hardened. The Crypto Fear & Greed Index plunged to 9 this week, a reading that sits inside “extreme fear” territory and has not been seen since the turmoil around mid-2022.

Lower sentiment often tightens liquidity and magnifies price moves. When fear is high, even small catalysts can lead to outsized reactions.

When large holders cut back while many small accounts buy, the market structure changes. Liquidity can become thinner at certain price bands, so dips are deeper and rallies can be swift when buying returns.

History shows that these phases sometimes lead to extended consolidation periods. Other times they mark the start of a larger trend reversal. Right now, both are possible; clarity will arrive only after flows and macro signals settle.

Some traders point to geopolitics and macro headlines as the trigger for the latest nervousness. Reports say global risk-off moves — including weak tech stocks and trade tensions — fed into crypto selling.

Still, Bitcoin remains well above many long-term supports that traders watch. Many long-term holders have been steady buyers through past pullbacks. That steady buying could matter if fear eases and larger investors begin to redeploy capital.

Featured image from Pexels, chart from TradingView