Bitcoin whales' balance growth turns negative in May

Recent on-chain data indicates a significant shift in behavior among Bitcoin's largest holders, with key investor cohorts showing signs of stagnation or distribution, a pattern analysts compare to the onset of the 2022 bear market. The trend suggests a weakening of structural demand that has historically supported the cryptocurrency's price.

According to analysis from the analytics firm CryptoQuant, the balance growth for Bitcoin whales—entities holding between 1,000 and 10,000 BTC—turned negative in May, marking the fastest contraction this year. Monthly growth for this group has remained flat since February, signaling a move from accumulation to what analysts describe as a neutral-to-slight distribution posture. Simultaneously, dolphin balances—those holding between 100 and 1,000 BTC—continue to grow on an annual basis but at a sharply decelerated pace. Monthly growth for both cohorts is now near zero, a condition that has historically preceded periods of sustained price weakness.

These shifts occur as the supply of Bitcoin held by long-term investors reaches a record 15.8 million BTC. Analysts caution that this milestone is not necessarily a bullish signal. They argue it...