Analysis: Retail Bitcoin Sell-Off Surges on One Exchange as Whales Accumulate $900 Million in Ethereum

BlockBeats News, August 1 — Cryptoquant analyst Amr Taha released a market analysis stating that the 7-day moving average of Bitcoin inflows from short-term holders (STHs) to a certain exchange has surged dramatically, skyrocketing from around 10,000 BTC to over 36,000 BTC by the end of July. This sharp increase indicates unusual activity among retail investors, possibly driven by profit-taking. A spike in exchange inflows typically signals that short-term investors are preparing to sell, especially when prices reach new highs. This aligns with Bitcoin’s recent record-breaking rally and further supports the hypothesis that retail investors are reducing their BTC exposure.

In stark contrast to retail selling, on July 31, an on-chain whale wallet transferred over $900 million worth of ETH out of a CEX. Large-scale exchange outflows are usually associated with accumulation strategies, as whales moving assets to cold storage wallets often signal a bullish outlook. The current uncertain macro environment has intensified the divergence between institutional and retail behavior: institutions are rekindling their interest in crypto assets, while retail investors appear more inclined to avoid risk and lock in profits rather than follow the institutional buying wave.