Bitcoin small wallets hit a 15-month high in accumulation.
Mid-tier wallets fall to a 38-month low, signaling distribution.
Retail investors show growing confidence despite market volatility.
Recent on-chain data from Santiment shows a clear change in Bitcoin holder behavior. Bitcoin small wallets, defined as addresses holding between 0.1 and 1 BTC, have reached a 15-month high. Since the October all-time high (ATH), these wallets have increased their holdings by 1.05%.
This steady accumulation suggests that retail investors are slowly buying more Bitcoin, even during uncertain market conditions. Instead of panic selling, smaller holders appear to be taking advantage of price dips. Historically, rising activity among smaller wallets often reflects growing grassroots confidence in the long-term value of Bitcoin.
Mid-Tier Holders Reduce Exposure
While smaller wallets are growing, the story is different for mid-tier holders. Wallets holding between 1 and 10 BTC have dropped to a 38-month low. This indicates that some mid-sized investors may be reducing their exposure or redistributing funds.
There are several possible reasons for this trend. Some investors may be taking profits after Bitcoin’s strong performance earlier in the cycle. Others could be reallocating funds into alternative crypto assets or different investment opportunities. In some cases, mid-tier wallets may even be splitting their holdings into smaller addresses for security or privacy reasons.
This divergence between Bitcoin small wallets and mid-tier wallets highlights a shifting balance in the market. Retail investors are becoming more active, while certain larger participants appear cautious.
UPDATE: Bitcoin small wallets (0.1-1 BTC) hit 15-month high with +1.05% accumulation since October ATH, while mid-tier wallets (1-10 BTC) sit at 38-month low, per Santiment. pic.twitter.com/XvPcsKtvbQ
— Cointelegraph (@Cointelegraph) February 20, 2026
What This Means for the Market
The rise in Bitcoin small wallets can be seen as a positive signal for long-term adoption. When retail investors accumulate, it often strengthens the network’s decentralization and reduces supply available on exchanges.
At the same time, the drop in mid-tier wallets adds complexity to the market outlook. If distribution continues, it could slow upward momentum in the short term. However, if smaller investors maintain steady buying pressure, it may help support price stability.
Overall, the data suggests a market in transition. Bitcoin small wallets are showing resilience and confidence, while mid-tier holders reassess their strategies. Traders and investors will be watching closely to see which trend dominates in the coming months.
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