Whales are withdrawing large amounts from the exchange while retail investors are pouring into Bitcoin, causing a deepening polarization in market sentiment.

[Block Rhythm] On August 1, an analyst from a data platform released a market analysis stating that the 7-day moving average of Bitcoin inflow from short-term holders (STHs) to a certain trading platform surged significantly, rising from about 10,000 BTC to over 36,000 BTC by the end of July. This sharp increase indicates unusual activity among retail investors, potentially driven by profit-taking. A surge in inflow to trading platforms typically suggests that short-term investors are preparing to sell, especially when prices reach new highs, which aligns with Bitcoin's recent record pump and further supports the assumption that retail investors are reducing their BTC investment exposure.

In stark contrast to the selling behavior of retail investors, on July 31, on-chain whale wallets transferred over $900 million worth of ETH from CEX. Large-scale transfers from trading platforms are usually associated with accumulation strategies, and the transfer of assets to cold storage wallets by whales indicates a bullish outlook ahead. The current uncertain macro backdrop has exacerbated the divergence between institutional behavior and retail investor behavior, with institutions reigniting their interest in crypto assets, while retail investors seem more inclined to avoid risks and lock in profits rather than follow the buying wave of institutions.