Recent data suggesting aggressive Bitcoin (BTC) accumulation by large investors appears to misinterpret internal exchange wallet maintenance.
Julio Moreno, head of research at CryptoQuant, explained on January 2 that apparent whale buying was primarily exchange-related activity.
Cryptocurrency exchanges routinely consolidate funds from multiple smaller deposit addresses into fewer large cold storage wallets.
These technical transfers can mimic the footprint of large investor purchases, creating false positive signals for market trackers.
What Happened
After filtering out exchange-internal transfers, Moreno identified a bearish trend among actual large-scale holders.
Bitcoin whales holding more than 1,000 coins were net sellers throughout December 2025.
Mid-sized wallets holding between 100 and 1,000 Bitcoin also saw collective holdings decline.
The distribution activity coincided with a volatile period for Bitcoin's price during December.
Bitcoin fell from highs near $94,000 to lows around $84,000 during the month.
US spot Bitcoin ETFs experienced persistent outflows totaling $4.57 billion across November and December.
Read also: Crypto Phishing Losses Fall 83% To $84 Million In 2025 Despite Active Drainer Ecosystem
Why It Matters
The misinterpretation demonstrates how exchange operational activities can distort on-chain analytics and mislead investors about market sentiment.
Whale activity has historically played an outsized role in driving Bitcoin price movements and volatility.
When exchange-related distortions are filtered from the data, large holders were distributing rather than accumulating Bitcoin.
Long-term holders have reportedly turned net accumulators over the last 30 days following a major selling event.
This shift suggests potential stabilization in some market segments despite ongoing whale distribution.
The distinction between genuine investor behavior and exchange housekeeping remains critical for accurate market analysis.
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