The Bitcoin market is experiencing notable selling pressure, primarily caused by older, longstanding whale wallets. Recent on-chain data indicates these wallets, particularly those holding Bitcoin for three to five years, have substantially reduced their holdings, influencing the overall market supply.
What drives institutional interest?
Simultaneously, institutional investors are ramping up their Bitcoin acquisition efforts, with a recent addition of 24,869 BTC into their portfolios over the past week. This growing institutional interest, according to Alphractal, could continue with another 15,000 BTC added if the current trend persists.
CryptoAppsy’s data reflects a cautious market, with Bitcoin’s price hovering around $77,113.91. Nevertheless, institutional buying rates continue to surpass new coin supply, though lingering whale sales from long-term holders keep significant price increases at bay. Many of these transactions occur over-the-counter (OTC), which minimizes drastic price changes in the spot market.
Can ETFs influence whale behavior?
The persistent demand for Bitcoin-based ETFs offers whales the opportunity to cash out. Especially relevant are wallets inactive for over seven years, which prefer OTC channels for selling. On-chain analyses show that the presence of three to five-year wallets decreased to less than 10% of the circulating supply, a drop from 13% at the close of 2025.
With institutional investors buying about 50,000 BTC monthly, whale activities largely balance out this demand, stabilizing BTC prices.
“Most of the selling is not rushed or panic-driven, but rather strategic and within a narrow price band,” shares analyst Alphractal regarding the current market behavior.
As of this year, dormant wallets for over five years have offloaded 38,400 BTC, matching the ETF demand seen over the span of about three months.
Analysts indicate that the broader narrative around ETF demand and whale sales is causing BTC ownership to redistribute. A potential market shift hangs on when the current wave of whale sales concludes.
By May 2026, the Coin Days Destroyed (CDD) metric reveals that large-scale movements from older wallets have tempered, with transitions slowing. Further selling might see BTC tethered between $78,000 and $82,000, influenced by long-term holders capitalizing on price upswings.
Key insights highlight a significant trend: large investors accumulate when the market is stable and liquidate during rallies. Recently, 8,063 BTC transferred to exchanges suggest another selling phase could be imminent.
