Markets Bitcoin whales accumulated an impressive $16.7 billion worth of bitcoin over a two-week period, despite U.S. spot Bitcoin ETFs experiencing record outflows totaling $4 billion.

U.S. institutional demand saw its lowest point ever in June, while large holders stepped in to absorb the selling, a pattern often observed near the bottom of market cycles.

By Shaurya Malwa | Edited by Jamie Crawley Updated Jul 3, 2026, 11:50 a.m. Published Jul 3, 2026, 11:45 a.m. 2 min read

  • U.S. spot Bitcoin ETFs recorded unprecedented outflows of $4.06 billion in June, marking their worst month since inception, leading to a negative balance for 2026 prior to a modest inflow of $221 million.
  • During this period, large Bitcoin holders, referred to as whales, purchased over 270,000 BTC, valued at $16.7 billion, even as demand from U.S. institutions remained weak, a trend typically seen at the lows of market cycles.
  • While the majority of major cryptocurrencies declined alongside Bitcoin, Solana surged approximately 15% since early June, while some Ethereum Layer 2 tokens hit all-time lows due to changes in technology and fee structures.
  • The upcoming U.S. inflation report, following a high reading of 4.2% in May, is viewed as critical for determining the Federal Reserve's interest rate trajectory and could influence the recent pressures on Bitcoin.

In the last two weeks, significant Bitcoin holders acquired more than 270,000 BTC, valued at approximately $16.7 billion, as U.S. institutions withdrew funds at an unprecedented rate.

U.S. spot Bitcoin ETFs faced outflows of $4.06 billion in June, their worst month to date, surpassing the previous record of $3.56 billion set in February 2025. This led to these funds entering negative territory for 2026 for the first time, although they recorded a $221 million inflow on Thursday.

According to analysts from crypto exchange Bitfinex, while institutions were selling, large holders were actively accumulating, adding over 270,000 BTC during the two-week timeframe despite a negative spot premium, indicating that the purchases were not driven by spot trading.

This simultaneous selling by institutions and buying by large holders is a pattern that has emerged near previous market cycle lows, where long-term holders acquire coins from sellers before any price recovery occurs.

Solana stands out among the major cryptocurrencies, having increased about 15% since early June, even as Bitcoin reached its lowest point in 21 months. This rise has been attributed to protocol upgrades and a 120% increase in on-chain transfers of tokenized real-world assets, totaling $8.53 billion.

Bitfinex analysts described this market behavior as "familiar," noting that altcoins often sell off first before experiencing recovery.

However, not all altcoins follow this trend. Tokens like Optimism and other Layer 2 solutions, designed to alleviate Ethereum's load, are trading near record lows after Coinbase's Base network abandoned Optimism's shared technology, diminishing the rationale for their value.

The next inflation report is seen as pivotal. May's inflation rate was notably high at 4.2%, but comments from Warsh at the ECB's Sintra forum regarding easing inflation risks provided a slight boost to risk assets. A softer inflation reading could alter the prevailing narrative regarding interest rates, which have been a burden on Bitcoin throughout the month, ahead of the Fed's next meeting.

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