Whale entry enthusiasm drops sharply, indicating a shift in Bitcoin market euphoria

On-chain data shows a significant shift in the trading patterns of Bitcoin whales. According to the latest analysis, the net inflow of whale funds to mainstream trading platforms in December sharply shrank from nearly $8 billion to less than $3.9 billion, a decline approaching 50%.

What signals are hidden behind this data?

Market Implications of the Reversal in Whale Behavior

Whale fund movements have always been a barometer of market sentiment. Reduced inflows typically reflect two key messages: first, the enthusiasm of large holders to buy the dip is cooling; second, selling pressure is noticeably easing. The drop from $7.88 billion to $3.86 billion is an uncommon level of decline.

However, it is worth noting that despite the overall downward trend, a large inflow of $466 million still occurred, indicating that some seasoned players are still positioning contrarily as euphoria fades.

Opportunities After Euphoria Cools

From a market psychology perspective, the retreat of euphoria (extreme optimism) often signals a return to rationality in market sentiment. When large holders’ enthusiasm for inflows drops from high levels to the current state, panic and irrational chasing in the market are dissipating.

This pattern provides support for short-term trends—reduced selling pressure means the lower support levels are more solid. Meanwhile, the appearance of large transactions also suggests that truly savvy “bottom-fishing” funds are quietly positioning, reserving ammunition for a possible rebound.

Key Follow-up Points

Whale activity shifts tend to precede market movements by one to two weeks. Going forward, it is crucial to monitor whether large holders will re-engage at lower prices and whether the market can find a new equilibrium after this euphoria fades.