Dormant Bitcoin Whale Returns After 7 Months, Buys $32.5M BTC Dip

After seven months of inactivity, a major Bitcoin whale has resurfaced, snapping up millions of dollars’ worth of BTC as prices slid to their lowest level since October 2024.

Blockchain data shared by Lookonchain shows wallet 3M4p1i bought 482 BTC worth about $32.5 million in a single move. The purchase came as Bitcoin briefly dipped to $60,001, rattling market sentiment.

Following the buy, the whale now holds 1,960 BTC valued at roughly $128.3 million, signaling renewed confidence from at least one large holder despite broader selling pressure. The whale’s reappearance, however, stands in contrast to the wider behavior of big players across the network.

Whales Sell, Retail Buys the Dip

According to on-chain analytics firm Santiment, whale and shark wallets holding between 10 and 10,000 BTC now control just 68.04% of Bitcoin’s total supply, a nine-month low. Over the past eight days alone, these large holders have collectively offloaded 81,068 BTC, adding significant sell-side pressure to the market.

This steady distribution from large wallets has played a central role in Bitcoin’s recent downturn. As bitcoin whales reduce exposure, price support weakens, making it easier for sharp declines to occur during periods of uncertainty or negative sentiment.

On the other end of the spectrum, smaller investors are doing the opposite. Santiment data shows that “shrimp” wallets holding less than 0.01 BTC now account for 0.249% of the total supply, a 20-month high.

Notably, while the percentage appears small, the trend matters more than the size. It reflects persistent dip-buying from retail participants who remain committed despite falling prices.

Historically, this setup often marks the early or middle stages of a bear cycle. Large holders tend to sell into strength or prolonged retail optimism, while smaller investors continue buying in anticipation of a rebound.

However, without a clear capitulation from retail, where smaller holders give up and sell, the so-called smart money usually feels no urgency to aggressively re-enter the market. That dynamic helps explain why Bitcoin has struggled to regain momentum. The market currently sits in a tug-of-war: retail buyers absorb supply on dips, while whales gradually unload into that demand.

The return of whale 3M4p1i shows that selective accumulation still happens at lower levels. Nonetheless, unless broader whale selling slows or retail sentiment breaks, Bitcoin may continue to face pressure before finding a durable bottom.

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