Bitcoin analysis: Small investors, or shrimps, are buying BTC. But it's the whales who keep rallies going.

CoinDesk

by Shaurya Malwa

February 21, 2026

AI-Generated Deep Dive Summary

Bitcoin's recent price action reveals a notable divergence in wallet behavior: while smaller investors ("shrimps") have increased their holdings by 2.5% since October's all-time high, large holders ("whales") have reduced theirs by 0.8%, according to Santiment data. This dynamic suggests that retail activity alone may not be sufficient to sustain long-term rallies, as larger players typically set the market tone. The article highlights how this split could lead to choppy trading, with small investors providing a floor and sparking short-term momentum but lacking the structural demand needed for sustained growth. Contextually, Santiment's data shows that wallets holding less than 0.1 BTC have seen their share of supply rise to its highest level since mid-2024. In contrast, larger holders (those with 10–10,000 BTC) continue to trim their positions. This divergence is significant because it reflects a broader market trend where mid-sized wallets may be buying during dips, but the largest whales are not following suit, potentially limiting upside potential. The article underscores why this matters: Bitcoin's future depends on whether large holders can reverse their selling or at least halt distribution. Without their participation, rallies risk being met with selling pressure, as smaller investors alone cannot drive sustained growth. The market's current state—marked by small retail activity but lackluster whale involvement—suggests that any meaningful rally will need to see larger players join in. In summary, the interplay between retail and institutional behavior is critical for Bitcoin's trajectory. While shrimps are active and providing a base of support, the whales' reticence to participate poses a key challenge. The article emphasizes the importance of large holders stepping up if Bitcoin is to achieve lasting momentum.

Verticals

cryptofinance

Originally published on CoinDesk on 2/21/2026