Whales Shed Bitcoin as Dolphins Slow, Echoing 2022

CryptoQuant, a crypto analytics firm, reports that addresses holding 1,000-10,000 BTC-known as whales-reduced their aggregate balances over the past year. Addresses holding 100-1,000 BTC, called dolphins, have slowed monthly accumulation.

The firm’s data show the one-year change in whale balances is negative and that both whale and dolphin cohorts have effectively stalled on a monthly basis. CryptoQuant identifies these two groups as primary sources of structural demand in Bitcoin markets.

Over the past year the total balance across whale addresses declined while dolphin accumulation decelerated compared with earlier periods. At the same time, supply held by long-term holders-wallets that do not trade frequently-increased to 15.8 million BTC, a record for that category.

The report states: “The 1-year change in whale balances remains in negative territory, a distribution pattern directly mirroring the 2022 bear market, when year-over-year whale growth first stalled then turned negative.” The firm adds that when whales and dolphins stagnate together, the market often lacks an important source of demand.

The report notes that Bitcoin is about 42% below the October all-time high of $126,080 cited in its analysis. Recent trading placed the price in the low $70,000 range, with intraday six-week lows near $72,669.

Traders on the Myriad prediction market have increased the odds that Bitcoin will trade below $70,000 before the end of May. Some participants referenced CryptoQuant’s findings on whale and dolphin behavior when adjusting short-term price bets.

The report focuses on balance changes and flow dynamics and does not attribute the shifts to a single cause.