Bitcoin Whales Sell Off $3.4 Billion in December; BTC Hits $92K Resistance: Insights from Glassnode

Bitcoin's largest holders, those controlling between 10,000 to 100,000 BTC, are reducing their stakes, having sold approximately 36,500 BTC (around $3.4 billion) since the beginning of December. This distribution aligns with Bitcoin's challenges in surpassing the $94,000 resistance level amid shifting market conditions.

Key Takeaways

Significant Sell-Off: The 10k-100k BTC holders have offloaded $3.4 billion worth of Bitcoin.
Market Response: BTC currently trades at $92,250, facing difficulty in breaking through the $94,000 resistance.
Liquidity Issues: Stablecoin liquidity has dropped 50% since August, signaling limited buying power.
Institutional Trends: Institutional investments have seen over $610 million in inflows, suggesting renewed confidence amidst market uncertainty.
Potential Volatility: If BTC falls below $88,000, increased market volatility is anticipated.

Bitcoin Whales Unload $3.4B in December; BTC Stalls at $92K Resistance: Glassnode

Bitcoin Whales Reduce Their Holdings

Bitcoin's largest non-exchange holders are actively reducing their assets. According to data from Glassnode, the cohort of entities possessing between 10,000 to 100,000 BTC has sold or redistributed 36,500 BTC, translating to approximately $3.4 billion since December 1.

This sell-off occurs as Bitcoin struggles to break the resistance level of $94,000 following a rate cut by the Federal Reserve, with BTC trading at $92,250 (-0.2%) during the early hours of Friday in Asia.

Understanding the Cohort: This group consists of institutional custodians and early miners holding significant amounts of Bitcoin.
The Volume of Transactions: Approximately $3.37 billion has been released in selling pressure over the last 12 days.
Market Shift: This move indicates a transition from accumulation to distribution among this group, contrary to the high optimism still felt among retail investors.

Market Liquidity Trends

Challenges in Market Liquidity

Market depths are declining as stablecoin liquidity—an indicator of buying capability—has seen a significant decrease. Data from FX Leaders reports a 50% reduction in stablecoin inflows since August, indicating that the current price levels are not supported by sufficient fresh capital for a breakout above $100,000.

“Bitcoin is trading steadily near $92,000 as the markets are reacting to the Fed’s recent rate cut and its plan to inject liquidity by purchasing $40 billion in Treasury bills monthly. While this liquidity infusion will have a more pronounced long-term effect, short-term sentiment is also picking up, particularly due to renewed institutional investments,” comments Akshat Siddhant, Lead Quant Analyst at Mudrex.

Investments into Bitcoin and Ethereum ETFs have surged, with over $610 million in inflows recorded in the past two days, reflecting growing investor confidence. For Bitcoin to advance towards the $100,000 mark, it needs to close daily above $94,140, with $90,000 providing immediate support.

Insights on Institutional Movements

The current market divergence is crucial to watch. While retail investors are caught up in the narrative of a “Fed pivot,” the smart money operating within the 10k-100k BTC tier is utilizing available liquidity for exiting positions. The collective outflow of $3.4 billion from this group, along with the 50% decline in stablecoin reserves, suggests that the prevailing range of $88,000-$94,000 is being leveraged for distribution instead of accumulation. If Bitcoin drops below the critical support level of $88,000, heightened volatility in the market is expected.