According to on-chain analytics firm Santiment, Bitcoin's so-called 'smart money' – wallets holding between 10 and 10,000 BTC – accumulated a staggering 36,322 Bitcoin worth approximately $3.21 billion over a nine-day period from January 10 to January 19, 2026. This accumulation occurred even as Bitcoin's price faced significant volatility, dropping 4.55% in 24 hours to trade around $89,110 at the time of Santiment's report.
Santiment highlighted a stark divergence in behavior between large holders and retail investors. While whales and 'sharks' were buying, retail wallets (holding less than 0.01 BTC) offloaded 132 BTC worth $11.66 million over the same period. The analytics firm stated this pattern creates 'optimal conditions for a crypto breakout', suggesting a long-term bullish divergence is forming as weaker hands exit and stronger hands accumulate.
The accumulation unfolded against a backdrop of market turbulence. Bitcoin had erased nearly all its 2026 gains, declining 6.25% over the past week and briefly falling below $88,000. A key driver of recent volatility was geopolitical tension, specifically after former US President Donald Trump discussed imposing tariffs on eight European countries, which caused Bitcoin to fall almost 7% on Monday.
Market sentiment indicators reflect caution. The Crypto Fear & Greed Index posted a 'fear' score of 32, and the Altcoin Season Index showed a 'Bitcoin Score' of 29 out of 100, indicating the market remains heavily focused on Bitcoin rather than altcoins. Despite the smart money accumulation, analyst outlooks are mixed. CryptoQuant CEO Ki Young Ju noted that 'retail has left Bitcoin markets and whales are buying,' while other observers point to bearish signals and Bitcoin's continued sensitivity to macroeconomic developments.
