On-chain data has revealed a significant decline in whale transaction activity, with Bitcoin inflows to exchanges dropping by more than $5.14 billion over a period of nearly two months. Specifically, BTC inflows from large holders to Binance decreased from $7.88 billion on November 24 to $2.74 billion as of Tuesday.
This data suggests a notable reduction in the amount of BTC being sent by whales to trading platforms. CryptoQuant’s on-chain analysts have acknowledged that whale inflows are typically associated with increased selling pressure, as large Bitcoin holders often transfer substantial amounts of BTC to exchanges with the intention of selling.
CryptoQuant Analysts Interpret Reduced Whale Inflows as Bullish Momentum
Whale Selling Pressure on Binance Collapses
“This shift in dynamics suggests that whales have changed their behavior. They are no longer selling aggressively and now appear to favor waiting.” – By @Darkfost_Cocpic.twitter.com/lnlxeD9Y6N
— CryptoQuant.com (@cryptoquant_com) January 20, 2026
CryptoQuant's analysts observe that large BTC holders are generally more cautious investors, exhibiting less sensitivity to market movements compared to retail participants. They typically demonstrate greater discipline and patience in their market actions.
However, CryptoQuant's analysis indicated that December presented significant challenges, even for large investors. Data from the analytics firm showed a surge in whale inflows to Binance towards the end of November, a movement driven by Bitcoin's pullback from its latest all-time high of approximately $126,000.
On-chain data previously showed that whales averaged monthly inflows of nearly $8 billion when BTC traded below $90,000. CryptoQuant's technical analyst believes this period caused panic-driven moves within the crypto market, noting a significant increase in whale transactions, particularly as BTC traded below $85,000.
The on-chain analyst suggested that the behavior of whales at that time reflected real stress among certain large investors who were offloading their BTC to limit losses. This initiative reinforced selling pressure in the market. In contrast, the current situation appears very different, with BTC inflows having decreased by a factor of three, and daily transactions being considerably fewer than at the end of November.
CryptoQuant's on-chain analyst further argued that Bitcoin's current price consolidation is encouraging a holding sentiment. They believe that holding significantly reduces selling pressure from whales, which can have a substantial impact on the market.
This analysis aligns with the views of Ki Young Ju, the founder and CEO of CryptoQuant, who believes that institutional demand for Bitcoin remains robust. He noted that U.S. custody wallets have added approximately 577 BTC over the past year, valued at over $53 billion.
Bitcoin Price Dynamics Amidst Market Influences
Bitcoin Fear and Greed Golden Cross Signals Potential Rally
“Historical pattern analysis reveals bullish sentiment shift as 30-day MA crosses above 90-day MA for the first time since May 2025” – By @MorenoDV_pic.twitter.com/rvXzxCtAVV
— CryptoQuant.com (@cryptoquant_com) January 20, 2026
On-chain data from Glassnode revealed that smaller BTC holders experienced unrealized losses for eight consecutive weeks. The firm noted that short-term holders require Bitcoin to recover above $98,000 to return to profitability. Glassnode's Short-Term Holder Net Unrealized Profit/Loss (STH-NUPL) metric, which tracks the financial positions of small BTC holders, indicated persistent losses for short-term BTC holders since November 2024.
On-chain data also showed that recent investors are looking to acquire BTC at around $98,300. The firm stated that historical patterns suggest that reclaiming and holding above the short-term cost basis typically marks the transition from a pullback phase to a durable rally.
At the time of publication, Bitcoin was trading at $91,083, representing a decline of nearly 2% over the preceding 24 hours. BTC had also dropped by more than 1.1% over the last seven days, though it had gained approximately 2.6% over the last 30 days. The digital asset had reached $97,000 on Monday morning before retracing sharply to $91,800.
Another CryptoQuant analyst noted a shift in Bitcoin’s Fear and Greed index from a state of fear to neutral (42), signaling a potential move away from BTC whale selling pressure. This analyst also observed that the 30-day moving average had crossed above the 90-day moving average for the first time since May, which confirms a potential uptrend.
Bitcoin had lost the gains from the previous week, influenced by President Trump's new tariffs on European nations and his plans concerning Greenland. Investors have reportedly rushed towards safe-haven assets like gold, pushing its price to a new all-time high of $4737.50 at the time of writing.