‘Smart Money’ Buys $3.2B in Bitcoin as Retail Investors Sell: Santiment
In a recent analysis by crypto sentiment platform Santiment, it was revealed that a significant amount of Bitcoin (BTC) has been accumulated by what they refer to as “smart money” entities over the past nine days.
That trend has emerged while retail investors have been offloading their BTC holdings. The increase in holdings by these institutional or high-net-worth individuals (often referred to as whales and sharks) is being seen as a sign of a possible “long-term bullish divergence.”
According to Santiment, this accumulation pattern indicates optimal conditions for a cryptocurrency breakout. While geopolitical issues continue to affect market sentiment, the pattern suggests a positive outlook for Bitcoin in the long term.
Over the past nine days from Jan. 10 to Jan. 19, wallets holding between 10 and 10,000 BTC (also referred to as “smart money”) have collectively acquired approximately $3.21 billion worth of Bitcoin.
On the other hand, retail investors, who are defined as those with holdings less than 0.01 BTC, have sold off 132 BTC valued at around $11.66 million during the same period.
Bitcoin Price Movement and Trump’s Tariff Threats
Since President Donald Trump’s inauguration in January 2024, BTC has experienced volatility whenever new tariffs have been proposed.
Bitcoin price performance over the past year (Source: CoinGecko)
That occurred once again on Monday when Trump discussed imposing tariffs on eight European countries as part of his mission to claim Greenland. Consequently, the price of the leading crypto dropped nearly 7%.
Other Noteworthy Crypto Indicators
While institutional investors are accumulating BTC, other indicators suggest that market participants are still highly focused on Bitcoin compared to other cryptocurrencies. For instance, the Crypto Fear & Greed Index posted a “fear” score of 32 in its Tuesday update, indicating a cautious approach among market players.
Furthermore, the Altcoin Season Index, which is based on the performance of the top 100 altcoins relative to BTC over the past 90 days, indicates a “Bitcoin Score” of 29 out of 100, suggesting that altcoins have performed relatively poorly compared to Bitcoin in recent months.
Cautious Market and Bitcoin’s Price Action
Crypto analyst Will Clemente mentioned in an X post that it is challenging to be optimistic about the crypto king based on its recent price action.
In terms of social media discussions, BTC is currently experiencing one of the highest rates of discussion within the crypto community, with comparisons being drawn between Bitcoin and precious metals such as gold and silver, which hit new all-time highs amid increasing geopolitical tensions.
