Bitcoin Price Falls Near $102K as Whale Accumulation and ETF Inflows Rise

• Bitcoin Price Drops to $102,000 as Whales Add 45,000 BTC, this Year’s Second-Biggest Weekly Buy.
• Bitcoin ETFs See Best Day in a Month with $524M in Net Inflows, Boosting Investor Confidence.
• Strategy’s Bitcoin Treasury Share Falls to 60% as More Companies Expand Their Crypto Holdings.

Bitcoin’s price dropped below $102,000 on Wednesday, which is a decrease of about 3% from the previous early in the day highs. Despite reaching over $105,000, the cryptocurrency suffered a sharp drop as the U.S. markets opened. The drop comes after a volatile period in the cryptocurrency market, including major altcoins witnessing declines in value.

Whale Accumulation Hints at Long-Term Confidence in Bitcoin

Despite massive Bitcoin outflows in early November, whale activity has increased. CryptoQuant analysts said, “In the last week, whales accumulated more than 45,000 BTC, marking the second-largest weekly accumulation process in these wallets.”

This is a similar trend to that in March, when major investors took advantage of the fall in BTC price to increase their holdings. CryptoQuant analysts believe that this increase in whale activity represents accumulation rather than panic selling.

The rising Bitcoin withdrawals from exchanges suggest that whales are moving their Bitcoin into long-term storage. The decreasing circulation of coins in the exchanges would also lead to reduced supply and ease the selling pressure, which may lead to price rallies as the market sentiment improves.

Alongside the whale accumulation, U.S. spot Bitcoin ETFs recorded a sharp rebound, drawing in $524 million in net inflows on Tuesday, the best day in more than a month. Furthermore, BTC ETFs now hold a cumulative net inflow of more than $60 billion since inception and a cumulative trading volume of roughly $1.5 trillion. 

If the market’s appetite for risk increases and volatility stabilizes, BTC could regain momentum. 

Strategy’s Bitcoin Dominance Drops as Corporate Treasuries Expand

In addition, Bitcoin’s dominance among cryptocurrencies held in corporate treasuries has dropped amid changes in the corporate landscape. In October, Michael Saylor’s MicroStrategy experienced a decline in its share of total corporate holdings, dropping to 60% from 75%. 

Moreover, the decrease in corporate dominance of BTC has been a result of firms starting to invest in altcoins as an alternative. Nevertheless, BTC holds roughly 82% of corporate treasuries. This highlights its high adoption among corporate treasury firms and institutional interest, even with the emergence of altcoins.

Corporate Bitcoin treasuries also surged to new highs in October, reaching over $444 billion. Firms such as Metaplanet, Coinbase and American Bitcoin expanded their holdings significantly. This growth highlights the growing number of companies adding crypto to their treasuries.

Also Read | BTC Price Outlook: $100K–$108K Range Signals Potential Bottom

Altcoin Speculation Index Remains Stable Despite BTC’s Slump

Although the cryptocurrency market has been volatile lately, there has been high institutional interest in BTC and altcoins. The Capriole Investment’s Altcoin Speculation Index has remained stable around 25, which means that the speculative activity in altcoins has not decreased. 

In addition, TOTAL3 market cap, a chart showing the total value of all cryptocurrencies excluding BTC and Ethereum, is only 17% below its record high.

This is another indication of resilience among several altcoins despite the BTC price correction. Nevertheless, participation in the altcoin market is still narrow, with a small percentage of major altcoins trading above key moving averages. 

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