Bitcoin Whale Activity Shows Mixed Signals as 25,000 Millionaire Addresses Disappear

Sharp Exchange Inflows Signal Potential Selling Pressure

Cryptocurrency exchanges experienced an unusual surge in Bitcoin deposits over a 48-hour period, with more than 17,000 BTC flowing onto trading platforms between January 20 and 21. According to Bitcoin researcher Axel Adler Jr., this included 9,867 BTC on January 20 and 6,786 BTC on January 21 ^[1].

The inflows represent a significant deviation from January's typical daily netflow range of negative 2,000 to positive 2,000 BTC ^[1]. While netflows have since normalized to approximately 296 BTC, the accumulated deposits have created what analysts describe as a supply overhang near current price levels ^[1].

This pattern mirrors movements observed when the market peaked in July and August 2025, potentially indicating that the current sell-off could intensify ^[1]. The price zone between $89,000 and $90,000 is now viewed as a critical resistance test for Bitcoin's recovery trajectory ^[1].

Short-Term Holders Face Losses

Market data indicates recent Bitcoin buyers are experiencing financial pressure. The short-term holder Spent Output Profit Ratio (SOPR), which tracks whether recent purchasers are selling at a profit or loss, shows a seven-day simple moving average of 0.996—below the key 1.0 break-even threshold ^[1].

When Bitcoin reached its recent low near $87,500, the SOPR dropped to 0.965, suggesting short-term holders were realizing an average loss of 3.5% ^[1].

25,000 Millionaire Addresses Lost in One Year

Blockchain data reveals a substantial decline in high-value Bitcoin wallet addresses over the past year. The number of addresses holding at least one million dollars in Bitcoin fell from approximately 157,500 in January 2025 to roughly 132,400 in early 2026—a decrease of about 16% ^[2].

Addresses positioned close to the million-dollar threshold proved particularly vulnerable, showing greater sensitivity to price declines and market volatility ^[2]. In contrast, the largest Bitcoin holders demonstrated more resilience, with wallets containing over ten million dollars in Bitcoin experiencing a significantly smaller decline ^[2].

Much of the growth in Bitcoin millionaire addresses occurred before significant political developments, particularly following the November 2024 election when Bitcoin's price surge pushed many wallets above the million-dollar mark through price appreciation alone ^[2].

Some Positive Market Indicators Emerge

Despite the concerning inflow data, Glassnode analysis shows improvement in certain spot market metrics. Both Binance and aggregate exchange cumulative volume delta have shifted back toward buy-dominant conditions, while selling pressure on Coinbase has stabilized ^[1].

The aggregated exchange spot cumulative volume delta has reached levels last observed in April 2025, a period that previously preceded significant price range expansion ^[1]. However, current buying activity remains insufficient to fully stabilize prices despite the reduction in overhead supply ^[1].

Crypto analyst Darkfost noted that stablecoin metrics support a potential bottoming process. Following Bitcoin's recent correction, the Stablecoin Supply Ratio experienced its sharpest drop of the current cycle, indicating Bitcoin's market capitalization declined faster than available stablecoin liquidity ^[1].

Political Support Insufficient for Sustained Growth

The data suggests that political developments favoring cryptocurrency have not translated into sustainable wealth creation when confronted with market volatility and profit-taking behavior ^[2]. Despite regulatory improvements and pro-crypto policy measures, market fundamentals and investor behavior continue to dominate price action and wealth distribution patterns.