The sharp downturn of Bitcoin this week — with prices touching $89,550 on Tuesday — has coincided with a notable rise in large-scale accumulation. Data from Glassnode shows that addresses holding more than 1,000 BTC have been increasing since late October, with a clear jump beginning on Friday.

Whale wallets had dropped to a yearly low of 1,354 on Oct. 27, when Bitcoin traded around $114,000, but by Monday the number had climbed 2.2% to 1,384, marking the highest level in four months.

At the same time, smaller holders are showing signs of stress. Glassnode data indicates that wallets containing at least 1 BTC have slipped from 980,577 on Oct. 27 to a yearly low of 977,420 on Nov. 17.

Small holders retreat, large players absorb supply

The shift reflects a familiar pattern in cryptocurrency downturns: retail participants often capitulate during sharp declines, while larger entities step in to accumulate. This trend also challenges the recent “OG dumping” narrative, which claims long-time holders have been placing heavy sell pressure on the market.

Discussing these dynamics, 10X Research’s Markus Thielen told Cointelegraph that some large holders are still trimming exposure, noting the significant role of the US Federal Reserve’s Oct. 29 FOMC meeting. “His message decisively broke the fragile balance that had existed between market sellers and buyers – between the OG mega whale sellers (1,000–10,000 BTC) and the whale buyers (100–1,000 BTC).”

He added that “Super-whales and mega-whales are absorbing some of the whale selling, but the 30-day net-flow ratio between these cohorts still shows decisive net selling.”

Price dips below $90K as sentiment hits extreme fear

Bitcoin has now fallen under the key $90,000 mark, trading near $89,900. The Crypto Fear & Greed Index has plunged into the “extreme fear” range with a score of 11 out of 100. Despite the anxiety, several industry figures — including executives from Bitwise and BitMine — believe sell pressure could ease and a bottom may form this week.

Speaking to CNBC, Bitwise CIO Matt Hougan suggested that current prices represent a “generational opportunity,” adding: “I think we’re nearing a bottom. I look at this as a great buying opportunity for long-term investors. Bitcoin was the first thing to turn over before this broader market pullback. It was sort of the canary in the coal mine signaling that there was some risk in all sorts of risk-on assets.”

Meanwhile, meme culture has resurfaced across social media, but voices such as Gemini co-founder Cameron Winklevoss have offered a more optimistic take, declaring that this “is the last time you’ll ever be able to buy Bitcoin below $90k!”

Analysts on X are also watching for a near-term relief move. TheCryptoDog noted that Bitcoin may be “due for a bounce soon,” writing: “If things play out clear and simple, $BTC tags ~87.7k – Some high TF MA support & horizontal support from previous resistance (the break of which triggered a rally in May).”

Sources:

https://cointelegraph.com/news/bitcoin-whales-accumulating-amid-crash-while-smaller-holders-offload

https://studio.glassnode.com/charts/entities.Min1KCount?a=BTC&chartStyle=column&s=1735657200&u=1763438367&zoom=ytd

https://x.com/cameron/status/1990623931816960003?s=46&t=MuRujqZUAz3TQE1vmr3c6A

https://x.com/TheCryptoDog/status/1990642389778903219