Bitcoin dropped more than 50% from its peak since early October, hitting a multi-year low of $60,000 on February 6. The cryptocurrency remains down sharply year-to-date despite clawing back some losses. Santiment data shows whales—large holders—ramped up purchases amid the rout, while smaller retail traders sold off positions.

Whales control vast Bitcoin reserves, often moving markets with their trades. During the correction, these big players increased stacks even as prices tumbled. Santiment tracked on-chain activity from early October through mid-February. Whale addresses holding at least 1,000 BTC added to portfolios steadily. Their accumulation contrasted sharply with retail behavior.

Retail investors, typically with under 1 BTC, panicked as values eroded. Transaction volumes spiked from these smaller wallets during key dips. November saw heavy retail selling after Bitcoin failed to hold $90,000. By December, the trend accelerated. Santiment noted retail outflows hit peaks around Christmas amid broader market jitters.

The $60,000 bottom on February 6 marked capitulation. Daily trading volume surged past $50 billion that day. Whales stepped in aggressively post-drop. Santiment reports their net position growth outpaced retail liquidation by threefold in early February. Prices have since rebounded about 15%, trading near $69,000 as of Thursday.

Market watchers see whale buying as a bullish signal. Large holders often front-run recoveries. Historical patterns back this: similar accumulation preceded 2021’s bull run. Retail selling, meanwhile, reflects fear. Fear and Greed Index readings dipped below 20—extreme fear territory—for weeks.

Santiment analysts point to exchange flows for clues. Bitcoin inflows to platforms like Binance and Coinbase soared from retail in late 2023. Whale transfers to cold storage rose instead. This divergence highlights investor class divide. Institutions and high-net-worth players stayed calm. Day traders chased momentum downward.

Broader context weighs on sentiment. U.S. regulatory scrutiny on crypto exchanges lingers. Federal Reserve rate decisions loom large. Bitcoin’s correlation with tech stocks strengthened lately. Nasdaq drops pulled it lower too. Yet whale resolve suggests confidence in long-term value.

February’s low tested supports at $58,000. Bulls defended there successfully. Recovery followed ETF inflows. Spot Bitcoin ETFs saw $2.4 billion net buys last week alone, per The Block data. Whales likely fueled some of that demand indirectly.

Santiment’s probe highlights market maturity. Early cycles saw uniform panic. Now, sophisticated players capitalize on weakness. Retail may regret sales if uptrend resumes. Bitcoin sits 28% off its November peak of $108,000. Year-to-date losses top 12%.

Traders eye $72,000 resistance next. Breakout could target $80,000. Whales hold roughly 15% of circulating supply, per Glassnode. Their actions carry weight. Retail rebuilds slowly, burned by the drawdown.