Recently, the cryptocurrency market has been actively discussing new information from analytics firm Glassnode regarding the supply of Bitcoin held by major holders, known as 'whales'.
Decline in Whale Holdings
According to Glassnode's latest update, the average Bitcoin held by whales is approximately 488 BTC, a level not seen since December 2018. The chart shows a clear downward trend in the average holdings of this cohort since November 2024. Many traders are now questioning whether this signifies a quiet distribution of assets or an expansion in the number of large holders.
Context of Supply Changes
The drop in supply has coincided with intense market activity following a strong rally in 2024-2025. Some large holders may be reallocating risk, locking in profits, or converting assets to stablecoins and derivatives. Therefore, the declining average could merely reflect a healthy redistribution of assets.
What Lies Ahead for the Market?
Market participants should closely monitor exchange inflows and outflows. A rise in exchange balances could indicate that large holders are preparing to sell, while net outflows would suggest coins are being moved into long-term custody. Additionally, the count of entities holding between 100 and 10,000 BTC will provide insight into whether supply is being distributed more broadly. Ultimately, Glassnode's tweet serves as a guide rather than a verdict on the market.
In conclusion, the decline in Bitcoin supply among whales may signal several trends in the market, and future flow data and price movements will be essential for understanding the current situation.
