$6 billion worth of Bitcoin withdrawn from exchanges as whale activity declines

Bitcoin’s recent rally, pushing the price above $95,000 and approaching an all-time high of $99,655 on November 23, has been accompanied by significant changes in market activity. Over the past week, Bitcoin saw an impressive $6 billion in net outflows from exchanges, including $3.9 billion on November 19 alone, according to data from IntoTheBlock (ITB). This wave of accumulation by retail investors has played a key role in driving Bitcoin’s price closer to the $100,000 mark.

A major contributing factor to Bitcoin’s price surge has also been the substantial inflow into U.S.-based Bitcoin exchange-traded funds (ETFs), with $3.38 billion flowing into spot BTC ETFs. This strong accumulation, particularly by retail investors, helped fuel Bitcoin’s climb to new highs. However, while retail interest has been strong, whale activity (large Bitcoin holders) has begun to cool down.

Data from ITB reveals a decline in large transactions, those involving at least $100,000 worth of Bitcoin, from 32,000 transactions to 19,500 between November 21 and 24. The volume of these transactions dropped dramatically, from $136.4 billion to $53.6 billion during the same period. This reduction in whale activity highlights that retail investors have been driving much of the market’s momentum in recent days.

Despite the cooling of whale transactions, a shift in the flow of Bitcoin among large holders was seen on November 24. The large holder net flow turned positive, with a net inflow of 4,090 BTC, compared to a net outflow of 9,190 BTC just days earlier. This reversal could signal that big players are beginning to accumulate again, potentially contributing to the fear of missing out (FOMO) as Bitcoin approaches the $100,000 level. A move above this psychological price point could intensify buying pressure from both small and large investors.

In the past 24 hours, Bitcoin has been consolidating around the $98,000 level. However, its daily trading volume surged by 27%, reaching $55 billion, indicating ongoing market activity and interest. Despite this, the broader global crypto market cap saw a slight dip of 2.3% to $3.47 trillion, with $494 million in liquidations recorded. The recent dip below the $98,000 mark triggered a market-wide decline, notably affecting small-cap altcoins.

Overall, the movements in Bitcoin’s price and the shifting activity between retail investors and large holders highlight an evolving market dynamic. Retail investors are taking the lead in driving Bitcoin’s recent rally, while large holders may be preparing for the next phase of accumulation, adding to the possibility of further price appreciation as Bitcoin nears the $100,000 milestone.