Bitcoin (CRYPTO: BTC) is witnessing a sharp divergence in investor behavior. The largest whale wallets are accumulating aggressively while mid-sized holders distribute coins.

Whales Accumulate as Mid-Sized Holders Sell

In a X post on July 20, on-chain analytics firm CryptoQuant data shows wallets holding 1,000 to 10,000 BTC have increased their 60-day net accumulation to roughly 66,700 BTC, approaching the 68,000 BTC level recorded on June 16.

The accumulation marks the cohort’s strongest buying activity since Feb. 17, when net inflows briefly exceeded 106,000 BTC.

In contrast, wallets holding 100 to 1,000 BTC have distributed approximately 77,800 BTC, representing one of the group’s most aggressive selling periods in recent months.

On April 25, the same group accumulated more than 92,000 BTC, with Bitcoin entering a roughly 29% correction about 10 days later.

This time, the setup has flipped, with mid-sized holders selling while larger whales continue absorbing supply.

While the firm cautioned that wallet cohort data alone cannot predict price direction, the ongoing transfer of supply toward larger investors represents a constructive medium-term signal for Bitcoin.

Spot Demand Weakens Despite Stable Prices

In a separate post, CryptoQuant highlighted a deterioration in Bitcoin’s spot demand.

The firm’s 30-day Spot Demand metric rebounded to roughly -80,000 BTC in early July but has since weakened to nearly -170,000 BTC.

Despite that decline, Bitcoin’s price has remained relatively stable as easing selling pressure and short covering in derivatives markets have offset weaker spot buying.

However, CryptoQuant warned that derivatives demand alone is insufficient to sustain a lasting rally.

Without stronger spot market participation, the market remains structurally fragile.

If spot selling remains subdued, derivatives-driven momentum could continue supporting a short-term rebound. But if spot selling accelerates again, CryptoQuant warned the current rally could end in a significant wave of long liquidations.

Price Action: Bitcoin gained a modest 2% over the past month, with most weekly sessions ending in a range-bound pattern.

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