Bitcoin’s recent Christmas rally fizzled out quickly, sending its price plummeting.
From $100K Hopes to a $95K Crash
Bitcoin briefly flirted with the $100,000 mark over Christmas, sparking excitement. However, that optimism was short-lived. The price swiftly dropped to around $95,700 – barely above its pre-rally level. This sharp reversal wasn’t entirely unexpected, given some key on-chain data.
Whale Activity: A Big Sell-Off
Analyst Ali Martinez highlighted a significant increase in Bitcoin deposits on exchanges. This “Exchange Reserve” metric tracks the total amount of Bitcoin held on centralized exchanges. A rise usually suggests more selling pressure, as people deposit Bitcoin to exchanges before selling it.
The chart clearly showed a massive jump in the Exchange Reserve, especially around Christmas Eve. Whales (large Bitcoin holders) deposited approximately 33,000 BTC – about $3.15 billion – into exchanges over the past week. It looks like they capitalized on the Christmas price surge to sell off a large chunk of their holdings.
What’s Next for Bitcoin?
The Exchange Reserve is a key indicator to watch. If it starts to decline again, it could signal that investors believe the price has bottomed out and are starting to buy back in. For now, though, the recent price drop suggests a period of uncertainty for Bitcoin.
