Bitcoin Whales Move $4.7 Billion into Cold Storage Amid Market Panic
By John Nada·Feb 10, 2026·7 min read
Bitcoin's recent selloff led to a surge in accumulation by whales, moving $4.7 billion into cold storage, while ETFs faced significant outflows.
A sharp selloff in Bitcoin has sparked one of the largest buy-the-dip events in this market cycle. According to CryptoSlate, records from accumulator addresses indicate a significant inflow of Bitcoin into long-term holding wallets, even as flows through exchange-traded fund (ETF) products remained net negative. This surge in accumulation follows a violent deleveraging wave that saw Bitcoin prices plummet, reaching as low as $60,000, the lowest level under President Donald Trump. The market's response to this downturn has been notable, showcasing the contrasting behaviors of different investor segments amid heightened volatility.
On February 6, accumulator addresses tracked by CryptoQuant received 66,940 Bitcoin in what is described as the largest single-day inflow of the current cycle. This movement into accumulation-style wallets represents approximately $4.7 billion in Bitcoin, which traders interpret as a signal that large holders are absorbing supply during this dip. While the on-chain data indicates significant accumulation, the ETF market continues to experience outflows, highlighting a split narrative in the current market dynamics.
Notably, Strategy, a public company known for its Bitcoin-heavy treasury strategy, added 1,142 Bitcoin for about $90 million during the recent downturn. This purchase demonstrates the company's commitment to maintaining its position, despite the apparent market volatility. Similarly, Binance's SAFU fund has also been active, acquiring 4,225 Bitcoin to bolster its user protection reserves. These strategic moves by large players inject a visible demand into the market, potentially countering the panic-selling behavior of smaller investors.
The timing of these movements is crucial. The inflow of Bitcoin into accumulator addresses occurred after a rapid decline, indicating that as forced sellers were pushed out of their positions, large buying entities stepped in. This behavior is often interpreted by traders as a sign of long-term capital entering the market, suggesting a potential turnaround amid the prevailing bearish sentiment. However, the evidence is mixed across channels. While the on-chain picture points toward accumulation, the ETF wrapper continues to show redemptions, creating a complex narrative.
A record inflow after a liquidation shock occurred on February 6, where CryptoQuant-tracked accumulator addresses received a significant amount of Bitcoin. This shift represents a crucial moment in the market, as it happened when traders were already primed to look for signals of a bottom following the rapid decline below the $60,000 mark. The inflow is now being used by some traders as shorthand for “whales bought the dip.” In plain terms, the argument is that large holders used the price drop to absorb supply and then moved coins into wallets that appear to be long-term storage.
It is important to note that large transfers into accumulation-style wallets can reflect custody reshuffles, internal wallet management, or entity segmentation, rather than new buying conviction. Thus, while the February 6 inflow is significant, analysts caution against interpreting it as outright bullish without further confirmation. The more useful test is whether elevated inflows persist beyond this one-day spike and co-occur with other signs that the liquid supply is tightening. If the spike fades immediately, it can still be meaningful, but it may tell a more limited story about post-liquidation repositioning.
In a broader context, the market is witnessing a dual narrative: large holders are accumulating Bitcoin while regulated investment products are seeing substantial redemptions. CoinShares reported a sharp drop in digital asset investment products, with Bitcoin experiencing over $264 million in outflows last week. This suggests that while some investors see opportunity in the dip, many traditional investors continue to withdraw their funds, indicating a cautious sentiment among institutional players.
The interplay between large spot purchases and ETF outflows creates a tug-of-war scenario in the market. The persistence of accumulation signals from whales could indicate a long-term bullish outlook; however, the ongoing redemptions from ETFs reveal that traditional investor demand has not yet stabilized. This dichotomy raises important questions about the future trajectory of Bitcoin prices and market sentiment.
In the coming days, traders will be watching for key indicators. The sustainability of high accumulator inflows beyond February 6 will be critical for assessing whether the market is entering a phase of stabilization. Furthermore, the behavior of ETF flows will be closely scrutinized, as a stabilization could signal a shift in investor sentiment. Lastly, the actions of non-price-sensitive buyers like Strategy and SAFU will play a crucial role in establishing a baseline demand amid market volatility.
The broader implications of these movements suggest that Bitcoin remains susceptible to external market pressures and sentiment shifts. Recent volatility in tech shares and other markets has contributed to Bitcoin's high-beta behavior, reinforcing its status as a liquidity asset. Investors must remain vigilant, as the path forward for Bitcoin could hinge on the interplay of these forces.
Recent observations regarding the behavior of key investors provide further insight into the market dynamics at play. Strategy, known for its BTC-heavy treasury strategy, has continued to purchase Bitcoin even during the downturn. Between February 2 and February 8, the company bought 1,142 Bitcoin for approximately $90 million, demonstrating a strong commitment to its long-term holding strategy, despite the short-term market fluctuations. This move reinforces the idea that large institutional players may view current prices as a favorable entry point, while simultaneously highlighting the ongoing pressure on crypto-linked balance sheets during this cycle.
Similarly, Binance's SAFU fund has been actively rebalancing its reserves, acquiring an additional 4,225 Bitcoin on February 9, equivalent to $300 million in stablecoins. This fund serves as a user protection reserve and reflects a risk management strategy rather than speculative trading. The continual accumulation by SAFU adds another layer of support to the market, indicating ongoing confidence in Bitcoin's long-term prospects amid a turbulent trading environment.
However, while these whales are absorbing supply in the spot market, the ETF landscape tells a different story. Bitcoin ETFs recorded a net outflow exceeding $331 million last week, illustrating the challenges faced by regulated investment products. CoinShares highlighted that digital asset investment products overall saw outflows slow sharply to $187 million last week, despite the heavy price pressure. This deceleration in outflows could signal a potential inflection point, though it remains to be seen whether this will translate into a sustained recovery in investor sentiment.
The current environment underscored the delicate balance between the absorption of supply by large holders and the ongoing pressure from traditional investment products. Investors must navigate this complex landscape with caution, as the dynamics between accumulation and outflows will shape the future of Bitcoin trading and investment strategies. The next few weeks will be pivotal in determining whether the current cycle of accumulation translates into a sustained recovery or further volatility.
As the market grapples with these challenges, the lessons learned from this latest selloff may inform future strategies for both institutional and retail investors. The ability to discern between short-term panic and long-term opportunity will be essential as traders navigate this evolving landscape. Understanding the motivations behind whale behaviors and the dynamics of ETF flows will provide valuable insights into the future trajectory of Bitcoin and the broader cryptocurrency market. The unique characteristics of this cycle, combined with the ongoing volatility in associated markets, suggest that Bitcoin's journey will continue to be influenced by a variety of factors, both internal and external, as it strives for stability in a turbulent environment.