Bitcoin retail sell-off deepens as mega whales accumulate

Recent on-chain data reveals a stark divergence in Bitcoin (CRYPTO:BTC) market behavior, with smaller investors selling while large entities, or "mega whales," increase their accumulation.

The Accumulation Trend Score, an indicator tracking Bitcoin buying and selling activity by wallet size, highlights this shift.

Retail investors, defined as holders of less than 1 BTC, have intensified their selling activity, pushing the metric below 0.2—a level indicating heavy distribution.

Conversely, mega whales, entities holding more than 10,000 BTC, are accumulating again, with their score nearing 0.6.

This trend marks a reversal from earlier this year when these large investors were among the first to engage in substantial sell-offs during Bitcoin's price decline.

The divergence follows a period of uniform selling across all investor cohorts earlier in 2025.

Between November 2024 and January 2025, the Accumulation Trend Score for most groups hovered near 1, reflecting strong buying activity that fueled Bitcoin’s rally past $100,000.

However, by February, the market shifted to widespread distribution, leading to a bearish reversal.

Glassnode data suggests that the current accumulation by mega whales could signal a potential market trend shift.

Historically, such behavior by large investors has preceded bullish recoveries.

David Hernandez of crypto asset manager 21Shares noted that institutional investors often view periods of compressed valuations as opportunities to re-enter the market.

While retail panic selling reflects uncertainty and fear—evidenced by the Crypto Fear & Greed Index dropping to "extreme fear"—the actions of mega whales may indicate growing confidence among seasoned investors.

Analysts caution that global economic conditions and regulatory developments will play crucial roles in determining whether this accumulation leads to a sustained price recovery.

The contrasting behaviors underscore the complexity of Bitcoin's market dynamics, where smaller holders react to short-term volatility while larger players take a long-term strategic approach.

As accumulation trends evolve, market participants are closely watching for signs of stabilisation or further disruption in the cryptocurrency ecosystem.

At the time of reporting, the Bitcoin (BTC) price was $83,262.43.