Retail Bitcoin Investors Take Profits, But Exchange Trends Suggest Continued Buying Pressure

Bitcoin’s march toward the $100,000 milestone has seen a noticeable uptick in retail investor selling. Glassnode data reveals that smaller holders, often referred to as “shrimps,” have offloaded 75,000 BTC, worth around $7 billion—marking their largest distribution since the cryptocurrency’s previous peak in March above $73,000. Historically, retail selling often aligns with market tops, but recent patterns suggest this activity is not a definitive signal of broader sentiment.

Who’s Buying?

Larger holders, classified as “sharks” (those with balances of 100–1,000 BTC), appear to be absorbing much of the selling pressure. Glassnode shows this cohort has accumulated 140,000 BTC in recent weeks, reinforcing a narrative of strategic accumulation amid market volatility.

Exchange vs. OTC Divergence

The distribution trends extend to exchange and over-the-counter (OTC) activity. CryptoQuant reports OTC balances climbed by 20,000 BTC following Bitcoin’s rise past $90,000, possibly signaling institutional profit-taking. On the flip side, exchange-held balances have declined to their lowest in two years, dropping below 3 million BTC. This reflects robust demand and a preference for long-term holding among buyers.

The Big Picture

The market presents a mixed outlook. Retail selling could signal caution, but the drop in exchange reserves and increased activity from larger investors highlight continued confidence in Bitcoin’s trajectory. As the cryptocurrency approaches the psychologically significant $100,000 mark, a short-term pullback remains possible, though long-term fundamentals point to sustained interest.

The coming days may determine whether retail investors correctly anticipate a local top or miss out on another surge higher.