Bitcoin Whales Reemerge in Spot Markets as Price Approaches $100,000

Bitcoin has surged past $97,000 on Tuesday as significant traders re-enter the spot market following a period of ETF-driven sell-offs. This movement revitalizes the $100,000 target and indicates a shift in market drivers.

Key Takeaways:

Bitcoin's price surged over $97,000 as whales re-enter the spot market.
Retail traders are largely using leverage, entering through futures markets, while whales are accumulating Bitcoin directly.
Recent price movements indicate shifting market dynamics, suggesting a longer-lasting rally driven by genuine demand.
The clearing of ETF sell-offs has allowed whales to reposition at favorable levels.
The current market phase signals a potential pathway toward $100,000 if buying momentum continues.

Recent analysis of on-chain and derivatives data indicates that this rally is not fueled by retail leverage. Instead, large holders, often referred to as whales, are accumulating Bitcoin in the spot market, while smaller traders engage through futures contracts. This distinction is important, as price increases led by spot buyers typically have greater longevity.

Whales Are Accumulating While Retail Traders Leverage

Data from CryptoQuant’s Futures Average Order Size chart reveals a clear trend. As Bitcoin climbed from the mid-$80,000s to over $95,000, larger orders—often associated with whales and investment funds—have surged. Concurrently, there has been a notable increase in smaller trades within futures markets, indicating that retail traders are predominantly entering through leverage rather than direct spot purchases.

This distinction holds significant implications. Historically, during previous market peaks, retail traders lead the charge while whales cash out. However, this time, whales are purchasing first, prompting retail traders to follow suit. Such a structure aligns more with the early stages of a trend rather than a late-cycle blow-off.

Spot Demand Sparked the Rebound from $84,000

Further data from CryptoQuant illustrates a shift in Bitcoin’s daily percentage changes, transitioning from significant drops in November to consistent gains in January. This adjustment signifies genuine buying pressure rather than merely short squeezes. A gradual price rise accompanied by minimal pullbacks typically indicates that spot demand is effectively absorbing supply.

Bitcoin’s rally from roughly $84,400 to over $96,000 reflects this pattern. The selling pressure observed in November has diminished significantly.

The ETF Reset Has Cleared the Path

Earlier this month, U.S. spot Bitcoin ETFs experienced over $6 billion in sell-offs. This activity primarily stemmed from latecomers who bought in after the October peak and subsequently exited at a loss. Bitcoin maintained a price near the ETF cost basis around $86,000, which acted as a support level. As redemptions began to slow, prices stabilized, clearing out weak hands and resetting market positions. This allowed whales to start rebuilding their exposure at lower prices.

The Bull Market Remains Intact

The decline from $110,000 to $85,000 should not be viewed as the conclusion of the bull market but rather the end of the first speculative leg. This phase helped flush out excess leverage and prompted ETF investors to exit. Following this, the market entered a reaccumulation phase where solid investors bought while prices hovered sideways.

Currently, Bitcoin is entering the expansion phase once again, with prices breaking out as new capital flows return to the market. Bitcoin ETFs enjoyed a significant day with $760 million in inflows. They needed this rebound after starting the year strong, dipping, and now returning to positive year-to-date figures.

Bitcoin is now consistently trading above $95,000, a threshold that has limited previous rallies since early December. This break suggests that the balance of power has reverted back to buyers. Should whales continue to lead in the spot market and ETF sell-offs remain limited, the path toward $100,000 becomes increasingly likely. If demand continues to rise, we could witness a move to new highs.

Currently, the data indicates that this rally is supported by real capital rather than fragile leverage, providing Bitcoin with a solid foundation not seen in months.