Bitcoin whales have quietly sold enormous amounts of the cryptocurrency in the past two weeks. In just a few days, investors holding 10,000-100,000 BTC have either sold or redistributed approximately 36,500 BTC, totaling about $3.4 billion. This cohort comprises institutional custodians and early miners who have held their positions for several years. The 12-day selling spree represents a sharp turn from accumulation to distribution by these whales. What’s driving Bitcoin whales’ activities, and what does the future hold based on historical data?

Price Struggles at Key Levels

The whale activity also comes at a time when Bitcoin is struggling to maintain its position above the $92,000 mark. During the early Asian session on Friday, the cryptocurrency changed hands at $92,250, down 0.2% from previous levels. Traders are closely monitoring the $94,000 resistance level. On multiple occasions, Bitcoin has failed to breach the trendline convincingly. Interestingly, this price consolidation is occurring despite Bitcoin’s increasing adoption in several industries. This growing use of cryptocurrency extends beyond payments and trading into everyday digital entertainment. Major retailers are beginning to accept crypto payments, with Bitcoin spearheading the charge, and the best Bitcoin casinos have been the go-to for users who want more than just the gaming options and exclusive bonuses, but also benefit from Bitcoin’s speed and reliability. This indicates that this near-term resistance may not be reflective of the cryptocurrency’s real-world use. 

Fed Rate Cut Adds Complexity

A recent move by the Federal Reserve adds new uncertainty to crypto markets. The central bank cut its benchmark interest rate by 25 basis points to 3.75% on December 10. The action was the third rate cut this year after similar moves in September and October. The acceleration in whale distribution started when monetary policy became more accommodative. This combination usually favors risk assets such as Bitcoin.

Liquidity Fears Persist

The market is also facing liquidity challenges that are making prices highly volatile. The amount of stablecoins entering the exchange has fallen drastically since August, from $158 billion to $76 billion. This is a 50% depreciation over four months. The 90-day moving average also indicates this decline from $130 billion to $118 billion. This means that the reduced capital is not capable of absorbing huge buy offers.

The Distribution Phase Emerges

The depth of the market is weakening on major exchanges, making it difficult to execute large orders. The price range of $88,000 to $94,000, which was supposed to be an accumulation range, has actually become a distribution range. On the other hand, retail traders are still optimistic and are buying heavily. This shift in market conditions isn’t new.

Similar whale trade activity happened when Bitcoin peaked at over $108,000 on December 17, 2024. Accounts with 1,000 to 10,000 BTC sold a combined total of 79,000 BTC, which resulted in a 15% pullback. The same traders later invested 34,000 BTC worth $3.2 billion when it fell to under $95,000. The moves indicate a strategy in timing, rather than a rush to sell.