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Bitcoin whales were at the forefront as one of the fundamental elements for the recovery of the BTC price. After sharp profit-taking that sparked fear among investors, prices quickly recovered mid-week. Now, the bearish trend appears to be fading as Altcoin prices also recover.
One aspect to consider is that large wallets or whales are shifting their focus towards alternative currencies. The pullback earlier in the week caused a drop in the altcoin seasonal index (now at 69). That means some investors see this as a buying opportunity in altcoins.
The altcoin season is expected to extend through much of 2025, considering the collapse of Bitcoin’s dominance in recent weeks. At the time of writing this note, the dominance of the largest Cryptocurrency over the rest of the market is 56.17%. This translates to a return of -6.21% during the last month ending this December 12.
Despite this perceptible change in the whales’ radar, the preference for Bitcoin continues to be higher than the rest of the currencies combined. In that sense, although they dedicate part of their funds to other tokens, the main trading ground continues to be BTC.
The decline in Bitcoin dominance suggests that whales are diversifying their capital into altcoins. Source: TradingView
Behavior of Bitcoin whales in the first half of the week
During the first half of this week, some large whales liquidated part of their BTC holdings. This caused a setback that quickly deepened with nervous liquidations by retailers. With Bitcoin falling below $95K, some whales, including corporate ones, bought cheap BTC for their balance sheets.
Basically, the selloff on Monday and Tuesday was a tribute from retailers to big investors. As reflected by data from Trading Different, large Wall Street portfolios maintained capital transfers to Bitcoin spot ETFs. Thus, during the days of BTC decline, positive flows towards these exchange products were maintained.
The latter was a clear enough sign that whales were buying where scared retailers liquidated. According to on-chain data collected by WhaleBot Alerts, at the height of the pullback, numerous transactions of between 400 and 800 BTC left exchanges. Likewise, large amounts of stablecoins entered.
Although the general trend of those days was of dominant shipments of BTC to the exchanges, it is evident that the large whales took the opportunity to buy. At the time of writing, whales seem to relatively slow down purchases, as the BTC price once again settles above $100K.
Until now, some large portfolios see this price as the limit for taking profits. The psychological barrier of $100K remains strong and BTC seems to have little strength to consolidate above it.
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