Bitcoin whales initiated a significant buying spree from late July, scooping up roughly 40,100 BTC worth around $2.6 billion in just nine days. This activity predated the $233 million institutional inflow that followed shortly after, marking a clear sequence where major holders moved first as the crypto entered its historically weakest month.

Whales Move Before Institutions

Data from Santiment shows wallets holding between 1,000 and 10,000 BTC increased their share of supply from 21.11% on July 23 to 21.25% by July 31. Meanwhile, larger whales holding 10,000 to 100,000 BTC, after trimming positions through July 22, bottomed on July 27 near 11.19% then reversed to finish the month at 11.25%. While these changes might seem minor in percentage terms, they translate to a sizeable accumulation of about 40,100 BTC, aligning with roughly 0.20% gain over the circulating supply of 20.06 million coins.

Derivatives data adds weight to this trend, with the whale-retail divergence gauge hitting +21.8 on a daily timeframe, indicating that whales leaned heavily toward long positions compared to retail traders. This is based on Binance Futures positioning, signaling conviction among large players rather than mere spot buying.

Institutions Step In With Big ETF Inflows

Following whale movements, institutional flows through US spot Bitcoin ETFs reversed after a rough patch. The funds had four consecutive days of outflows, including two massive single-day withdrawals of $225.18 million and $240.08 million on July 23 and 24. However, by July 29, inflows started to return modestly at $32.11 million, culminating in a $233.13 million net inflow on July 30 the second-largest daily inflow recorded.

BlackRock’s IBIT led the charge, accounting for $183.4 million or about 79% of total ETF inflows that day, breathing fresh life into the spot Bitcoin ETF demand after a period of redemptions. This responsive institutional appetite, arriving days after whale accumulation, adds another layer to BTC's late-July rally amid expectations for a challenging August.

This material is for informational purposes and does not constitute financial advice.