Dormant Whales Transfer $9.5 Billion, Indicating a Strategic Shift in the Crypto Market

The recent downturn in Bitcoin has put additional strain on altcoins, resulting in more than $1.1 billion in long positions being wiped out within a single day. Of these liquidations, 75% were linked to alternative cryptocurrencies, with 45% coming from

alone. This drop, sparked by falling below $110,000 and Ethereum slipping under $4,000, has led to concerns about whether the current market structure can last. Nevertheless, both analysts and blockchain data indicate that this setback might be short-lived, as several structural factors point toward a possible recovery.

The cryptocurrency market has now shifted into a rotation phase, with Bitcoin regaining its leadership after 79 days of Ethereum-driven advances. Altcoin Vector reports that Ethereum’s 68-day rally—from $2,200 up to an all-time high of $4,900—has ended, prompting capital to flow back into Bitcoin. Still, the wider altcoin sector remains in what Swissblock describes as a “reset phase,” with 22% of altcoins currently showing negative momentum, which matches historical bottom ranges of 15-25%. This indicates a stabilization period is underway, and once Bitcoin finds its footing, Ethereum and other altcoins may spearhead the next upward cycle.

Several technical indicators are also pointing to a potential market bottom. Bitcoin’s recent decline has coincided with the emergence of a long-term Cup & Handle pattern among leading altcoins—a formation that has often preceded major price rebounds. In addition, the Risk-Off Signal, which measures overall market vulnerability, remains steady, suggesting that despite recent turbulence, there is no widespread risk to the system.

Blockchain data further highlights the market’s underlying strength. Notably, large holders have made significant moves, such as the transfer of 80,201 BTC (worth $9.5 billion) to Galaxy Digital after 14 years of inactivity, signaling strategic accumulation. While these actions may indicate consolidation, they do not point to panic selling. Rather, they mirror behaviors seen in previous cycles, where Bitcoin’s retesting of crucial support levels was followed by renewed upward momentum.

The Fear and Greed Index, which currently stands at a bullish 61, along with increasing online buzz around meme coins, also points to a possible change in investor sentiment. Historically, brief Bitcoin corrections have paved the way for altcoins to outperform, especially as retail investors seek higher returns during periods of institutional stability. Analysts such as Moustache have observed that altcoins are quietly forming long-term bullish patterns, which could fuel a broader market recovery once Bitcoin stabilizes.

Although short-term pullbacks may continue, the available data does not indicate a prolonged bearish trend. Swissblock’s Aggregated Impulse indicator—which has reliably identified major market bottoms since 2024—suggests that the current reset phase could result in a 20-30% rally for Bitcoin and gains of 50-150% for altcoins. For those willing to wait, the combination of technical consolidation, large holder activity, and positive sentiment signals a cyclical buying opportunity rather than a fundamental market breakdown.