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Bitcoin Holders Accumulate Amid Middle East Conflict

Bitcoin accumulates with whales and retail despite market's extreme fear sentiment.

  • Large Bitcoin holders accumulated over 61,568 BTC in the past month amid geopolitical tension and market uncertainty.
  • While whales are buying for a potential breakout, retail wallets are also accumulating, driven by FOMO.
  • The overall market sentiment remains in “extreme fear”, as indicated by the Crypto Fear & Greed Index.

In a month marked by escalating conflict in the Middle East and macroeconomic uncertainty, large Bitcoin holders added 61,568 more BTC to their wallets. This accumulation by whales and sharks occurred while smaller wallets also increased their holdings, according to data from Santiment. Consequently, persistent Bitcoin exchange outflows throughout March signal a trend of accumulation rather than selling.

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Santiment analysts noted that this whale activity could be a promising sign for an eventual price breakout. “Ideally, the ranging pattern will break upwards when large wallets are accumulating, while retail is dumping. This has historically been a very reliable pattern to signal the start of bull cycles,” they said. However, some whales adopted a different approach, moving tens of millions of dollars to exchanges during recent price drops.

Dominick John, an analyst at Zeus Research, explained the divergent behaviors. “Whales are scooping up BTC because they’re positioning ahead of a potential breakout, quietly stacking during consolidation periods. Small wallets are chasing the momentum, driven by FOMO during uptrends,” he told Cointelegraph. Meanwhile, investor sentiment remains deeply uncertain and fearful.

The Crypto Fear & Greed Index returned a score of 13 on Friday, firmly in “extreme fear” territory, according to its website. Both the prior week and the month of February averaged similar “extreme fear” ratings as well. This persistent caution contrasts with the accumulating activity observed among both large and small Bitcoin holders.

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