A CryptoQuant analyst also noted a shift in Bitcoin’s Fear and Greed Index from fear to neutral (42).
On-chain data revealed that whale transactions have declined significantly, with Bitcoin inflows to exchanges dropping more than $5.14 billion in nearly two months. BTC inflows from large holders to Binance dropped from $7.88 billion on November 24 to $2.74 billion on Tuesday.
The data suggests that whales are sending less BTC to trading platforms than before, with CryptoQuant’s on-chain analyst acknowledging that whale inflows are generally associated with selling pressure. He argued that large Bitcoin holders tend to transfer large amounts of BTC to exchanges with the intention of selling.
CryptoQuant analysts say less whale BTC inflows signal bullish momentum
The firm’s analyst acknowledged that large BTC holders are more cautious investors and are less sensitive to market movements than retail participants. He noted that whales typically act with greater discipline and patience in the market.
However, CryptoQuant’s analysis revealed that December was particularly challenging, even for large investors. Data from the analytics firm found that whale inflows to Binance surged at the end of November, driven by Bitcoin’s pullback from its latest ATH around $126,000.
On-chain data showed that whales averaged monthly inflows of nearly $8 billion when BTC traded below $90,000. CryptoQuant’s technical analyst believes that the phase caused a panic-driven move in the crypto market. He noted a significant surge in whale transactions, especially as BTC traded below $85,000.
The on-chain analyst suggested that the whales’ behavior reflects real stress among certain large investors who offload their BTC to limit losses. He said the initiative reinforces selling pressure on the market, but the current situation looks very different. He revealed that BTC inflows have been divided by 3 and that daily transactions are far fewer than at the end of November.
CryptoQuant’s on-chain analyst also argued that the current price consolidation in Bitcoin is encouraging holding. He believes that holding significantly reduces the selling pressure by whales, which can significantly impact the market.
The analysis is similar to Ki Young Ju’s, the founder and CEO of CryptoQuant, belief that institutional demand for Bitcoin remains strong. He noted that U.S custody wallets had added roughly 577 BTC over the past year, worth more than $53 billion.
Bitcoin drops due to geopolitical tensions
On-chain data from Glassnode revealed that small BTC holders saw unrealized losses for eight consecutive weeks. The firm noted that the short-term holders need Bitcoin to recover above $98,000 to return to profitability. Glassnode’s Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) metric, which tracks the financial positions of small BTC holders, revealed that short-term BTC holders recorded persistent losses since November 2024.
On-chain data revealed that recent investors are looking to buy BTC at $98,300. The firm stated that history shows reclaiming and holding above the short-term cost basis marks the transition from a pullback phase into a durable rally.
At the time of publication, Bitcoin is trading at $91,083, down nearly 2% over the past 24 hours. BTC has also dropped by more than 1.1% over the last 7 days, but has gained around 2.6% over the last 30 days. The digital asset had climbed to $97,000 on Monday morning, but retraced sharply to $91,800.
However, another CryptoQuant analyst noted a shift in Bitcoin’s Fear and Greed index from fear to neutral (42), signaling a potential shift away from BTC whale selling pressure. He also noted that the 30-day moving average crossed above the 90-day moving average for the first time since May, confirming the potential uptrend.
Bitcoin has lost last week’s gains, driven by President Trump’s new tariffs on European nations over his plans to gain control of Greenland. Investors have rushed toward safe havens like gold, pushing it to a new all-time high of $4737.50 at the time of writing.
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