Bitcoin Whales Take ‘Wait-and-See’ Approach as Price Holds Below $100K

As Bitcoin continues to hover just below $100,000, many of the market's biggest players, known as "whales," are adopting a cautious strategy, refraining from making significant moves, according to a recent analysis.
CryptoQuant analyst Onat Tütüncüler highlighted the increasing inflow of Bitcoin into exchanges, signaling potential future volatility, but noted that there is currently no immediate selling pressure. Despite the inflows, whales seem to be waiting for a clearer signal before making any substantial trades.
Whales Remain on the Sidelines
Tütüncüler observed that since early November, especially following Donald Trump's presidential election win on Nov. 5, Bitcoin has seen large transfers to exchanges. In normal market conditions, such movements often indicate an imminent sell-off, as traders move their assets onto exchanges for liquidation. However, in this case, there has been no major sell-off, suggesting that Bitcoin whales are adopting a "wait-and-see" approach, rather than reacting impulsively to market fluctuations.
The increasing inflow of Bitcoin to exchanges may raise concerns among traders, but Tütüncüler pointed out that there are no strong signs of profit-taking at this time. He referred to the Adjusted Spent Output Profit Ratio (aSOPR) metric, which tracks the profitability of Bitcoin transactions, noting that it does not yet indicate substantial selling activity.
Bitcoin’s Market Dynamics: A Shift in Dominance
In typical bull markets, traders hold on to their Bitcoin as long as they anticipate further growth, and only begin to diversify into other assets once they see diminishing returns. Bitcoin’s market dominance, however, is showing signs of shifting, as its dominance has dropped by 5.54% since November 28, according to TradingView data. This suggests that traders may be rotating out of Bitcoin and into other cryptocurrencies.
As of December 3, Bitcoin’s price was hovering around $95,800, down slightly from its peak near $99,800 on November 22, just shy of its all-time high of $100,000. Despite recent fluctuations, Bitcoin remains above its long-term holders' average cost of $24,994 per BTC, reflecting significant gains for those who have held Bitcoin for over 155 days—up approximately 3,800%.
Traders Still Skeptical About $100K by 2024
While Bitcoin continues to show resilience, many traders remain uncertain about its prospects for reaching the coveted $100,000 mark by the end of 2024. Popular pseudonymous crypto trader Rekt Capital shared their thoughts on Twitter, noting that Bitcoin is still testing lower highs and producing longer downside wicks, a sign that the market is testing key support levels.
Rekt Capital suggested that as long as this trend continues, Bitcoin should be able to reclaim the $96,400 support level. While Bitcoin’s price has been fluctuating, the $100,000 target is still within reach. However, the question remains: will it hit this milestone before the year’s end?
Szymon Sypniewicz, co-founder and CEO of Ramp Network, echoed similar caution. While he believes that Bitcoin will eventually hit $110,000, he expressed uncertainty about whether it will reach $100,000 before 2024 concludes. He pointed out that the market is likely to experience ups and downs, adding a level of unpredictability to Bitcoin’s short-term price movements.
Conclusion: A Critical Moment for Bitcoin Investors
The current price consolidation and "wait-and-see" approach from Bitcoin whales highlight a key moment in the cryptocurrency’s market cycle. While Bitcoin remains strong and its long-term holders are enjoying significant gains, the path forward is not without challenges. Market participants will need to keep a close eye on both the increasing inflows into exchanges and the broader market dynamics to understand whether Bitcoin can make a push toward the $100,000 mark in the near future.
For now, Bitcoin’s price is stabilizing as investors and whales alike anticipate the next major market shift. With bullish catalysts such as institutional involvement and growing market interest, the next few months could prove pivotal in determining whether Bitcoin can reach new all-time highs.
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