Bitcoin dropped 20% since early November while gold climbed 9% and the S&P 500 gained 1%, according to market intelligence firm Santiment. The digital asset traded near $88,000 as of Wednesday, leaving cryptocurrency markets quieter than traditional assets that showed modest rebounds.
What Happened: Price Divergence
Santiment data shows whale wallets held steady through most of 2025, selling only after Bitcoin reached an all-time high in October.
Small wallets bought heavily in the second half of the year.
Long-term holders reduced positions from 14.8 million coins in mid-July to 14.3 million by December, then stopped selling. Active Bitcoin addresses rose 5.51% in the last 24 hours, yet transactions fell nearly 30% over the same window.
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Why It Matters: Rotation Signals
Garrett Jin, former head of exchange BitForex, said traders are reallocating capital between markets as opportunities shift. "Capital is the same and as always, it is wise to sell high and buy low," Jin wrote in social media posts.
Analyst CyrilXBT described current conditions as late-cycle positioning before a possible rotation where Bitcoin might lead when liquidity shifts.
Javon Marks pointed to chart patterns echoing the 2016-2017 build-up and forecast a rally toward $125,000.
CoinCodex projects BTC could reach $91,500 by Jan. 30, 2026, a rise of 3.68% from current levels. The platform listed sentiment as bearish with the Fear & Greed Index at 23, showing extreme fear.
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