Bitcoin sharks add 61,568 BTC as Middle East tensions rise

Large Bitcoin holders accumulated 61,568 BTC over the past month, Santiment reported, during a period of rising tensions in the Middle East and broader macroeconomic uncertainty.

Santiment defines these wallets as addresses with 10 to 10,000 BTC and put their 30-day balance increase at 0.45%. Wallets with less than 0.01 BTC grew holdings by 0.42%, or about 213 BTC, over the same period. The firm also tracked continued Bitcoin outflows from exchanges in March, indicating net withdrawals from trading platforms.

Analysts pointed to a historical pattern they monitor. “Ideally, the ranging pattern will break upwards when large wallets are accumulating, while retail is dumping. This has historically been a very reliable pattern to signal the start of bull cycles,” they wrote.

Not all large holders moved in the same direction. On March 5, two Bitcoin whales sold a rally, transferring tens of millions of dollars’ worth of BTC to exchanges.

Some investors are positioning for a move later in the cycle. Dominick John of Zeus Research said larger holders are adding BTC during consolidation to get ahead of a potential breakout, while smaller wallets tend to buy during rallies due to FOMO. He noted that whales often buy in waves, so accumulation may continue if the range holds and macro conditions remain supportive. If retail enthusiasm overheats, the market could pause or pull back before the next accumulation phase.

Risk appetite remains muted by one sentiment gauge. The Crypto Fear & Greed Index printed 13 on March 27, classified as extreme fear. The prior week and the month of February also averaged extreme fear.

Regional risk has been elevated since February, when the United States and Israel carried out strikes against Iran. Iran later retaliated against several neighboring countries. Santiment’s data covers the period as markets weighed those developments alongside macroeconomic uncertainty.