When the number of wallets holding 1,000+ BTC is rising, it means large players are accumulating — splitting large buys or new whales entering. When it's falling, whales are consolidating positions, distributing to smaller wallets, or exiting.

The key insight: during bear market bottoms (2019, 2020, late 2022–2023), whale wallet count rose significantly — smart money buying while retail panicked. The current 2026 correction shows a small distribution signal, but the count remains historically high at 2,240 — far above bear market lows of ~1,870.