BTC Whale Wallets Holding 1K+ Coins Drop Sharply After May 26 Rally

• The count of BTC wallets holding 1K coins dropped below 2095 after the price moved near $112000 in May.
• This change came as Bitcoin traded between $98000 and $112000 while large holders began trimming size.
• The divergence between price and 1K wallets could suggest whales are taking profit before the next cycle.

Large Bitcoin holders with balances of 1,000 BTC or more have started reducing their positions, according to recent blockchain data. The number of these addresses has dropped since late May while Bitcoin’s price has moved above $110,000. This shift could suggest profit-taking by long-term holders at current high market levels.

Data shared by analyst @ali_charts using Glassnode visuals shows a clear divergence between whale addresses and price. Between May 26 and June 11, the number of addresses with at least 1,000 BTC fell sharply. This trend marks a potential signal of distribution as Bitcoin rallies toward multi-month highs.

This development raises a key question for market watchers: Are whales preparing for a major shift in Bitcoin’s short-term momentum?

Key Whales Show Signs of Position Trimming

Addresses with 1,000 or more BTC are often considered “whales” due to their influence on price movements and market liquidity. On May 26, the number of these large holders peaked above 2,112 addresses. Just days later, that figure dropped to below 2,095 addresses.

This sharp decline suggests that some of the largest wallets have sold or transferred part of their holdings. Though the price continued to hover near $110,000, the downward trend in address count signaled caution. Historically, similar declines have appeared before major corrections or consolidations.

The chart shows a decoupling of price action from address behavior. While the BTC price moved between $98,000 and $112,000 during the period, the number of 1K+ wallets showed a steady fall. This disconnect often indicates redistribution from large to smaller participants or exchanges.

Distribution Patterns Mirror Previous Market Cycles

The drop in whale wallet count is not unprecedented. Past bull markets have shown similar behavior where large holders gradually exit positions as price climbs. This activity is often viewed as a strategic move to lock in gains before potential volatility returns.

The timing of this behavior is important. From May 20 to May 26, Bitcoin rallied to near $112,000 before facing resistance. Following this move, the whale address count dropped quickly, suggesting some holders used the rally as an exit point.

Data also shows a consistent pattern where trimming begins shortly after a local high is reached. This may imply that whales anticipate market slowdowns and act early. Such distribution cycles often shift capital to retail or mid-tier addresses that continue holding during consolidation.

What Trimming Means for Market Sentiment

The reduction in 1K+ BTC addresses could indicate reduced confidence in further short-term price expansion. While Bitcoin remains strong above $100,000, the whale exit may suggest market caution. Large holders often have access to detailed data and use it to manage downside risk.

Glassnode’s address metrics offer valuable insight into holder behavior across all market stages. A falling count of high-balance addresses reflects reduced concentration and possibly increased exchange flows. If the trend continues, the market could face growing volatility or cooling.

Despite the drop in whale counts, Bitcoin’s price has shown resilience, holding above the $102,000 zone. Market participants will monitor whether retail buying can offset large-holder selling in the sessions ahead.