Bitcoin recently touched a valuation of $60,001, marking its lowest price point since October 2024. To understand the drivers behind this market decline, we must look at the shifting behavior of different wallet classes.

Statistics show that shark and whale wallets, specifically those containing between 10 and 10,000 Bitcoin, have reduced their collective share of the total $BTC supply to 68.04%. This represents a 9-month low for this group. Notably, these large holders have offloaded -81,068 BTC over the course of just the past 8 days.

Conversely, smaller entities known as shrimp wallets—those with less than 0.01 Bitcoin—have increased their stake to 0.249% of the total $BTC supply, which is a 20-month high. While the overall percentage is modest, this accumulation indicates that retail investors remain committed to purchasing during market dips.

Market history suggests that bear cycles often arise when key stakeholders sell while retail traders continue to buy. Significant investors, or smart money, will likely continue to divest and hold off on re-entering the market until they observe clear capitulation from the general crowd, signaling that the public has moved on from the crypto sector.