The market has been shaken by a giant on-chain transfer of billions of dollars of $BTC today when a dormant whale who had not moved any money in years suddenly transferred some 89.4 million dollars worth of $BTC .
The more astounding part of this occurrence is the fact that this wallet had been fully dormant since 14 years ago and it contained Bitcoin since the very beginning of the network.
When these coins were purchased, one $BTC used to be worth only 3.88, which points to the scope of the gains of early adopters and the amazing rise of the asset over the years.
These whale awakenings can be very effective in creating market speculation, because such large movements of old coins can have a bearing on sentiment and liquidity.
Traders are waiting with bated breath to determine whether this transfer is an arrangement to sell, reorganize or it is just upgrade of wallets.
In any case, it is another reminder of how long the history of Bitcoin is- and how its initial users still control the narrative.
Solana spot ETFs had a good day on December 5 with a total net inflow of $15.68 million as captured by SoSoValue.
This momentum is indicative of the rising institutional confidence in $SOL in an era when there is more focus on crypto ETFs.
BSOL by Bitwise was the first in the inflows at $12.18 million, which brought its historical net inflows to a whopping $593 million. The FSOL of Fidelity came after with an inflow of 3.49 million net and its total of 46.42 million is a solidification of the continuous demand of major $SOL -based products.
To date, the sum of the net asset value of all SOL spot ETFs is equal to $878 million, which is approximately 1.18 percent of the market cap of Solana.
Have historical cumulative inflows of $639 million, the $SOL ETF trend has continued to gain momentum with the increased enthusiasm in the wider market.
$BTC market is witnessing a renewed episode of deceleration in the market as the volume of spot and futures trading is dealt a significant blow. The weekly volumes have fallen to 204,000 $BTC on average and the total activity is only 320,000 $BTC .
It is one of the weakest points in the ongoing cycle, which states the revival of the weaknesses within the entire market.
This fall is indicative of a time when traders appear reluctant and that volatility is dry and the momentum is waning. When the amount of trading declines with such severity, however, it is usually an indication that the retail as well as the institutional players are taking a back seat awaiting a better understanding of the market conditions.
Consequently, the price trends will become less explosive and slow.
Even though Bitcoin has occupied strategic positions in the recent past, the general market momentum is damp. The fact that the volumes have decreased begs the question that the subsequent movement could be a major swing-up or further slump. At this point, the market is evidently at wait and see stage.
When it starts picking up once again, it may be the beginning of another significant trend of Bitcoin. So far, the existing setting makes one cautious and patient.
Spot $BTC ETFs have registered the highest outflows of 195 million, which is the highest withdrawal in the last 2 weeks.
This reversal is an indication that investors might be becoming more cautious with market volatility keeps rising. The outflows coincide with the period when the momentum of $BTC has been struggling to maintain major levels, which is a possible indication of a change in short-term sentiment.
The institutional repositioning is usually expressed through large movements such as this one particularly where there is uncertainty that accumulates around macro or regulatory aspects.
Though there has been a robust inflow of the market over the last few months, the current outflow indicates that the confidence of investors can be lost easily.
In case the trend persists, this might further strain the price structure of $BTC . Nevertheless, the demand might keep recovering, and this scenario will turn the story around just as quickly.
In the meantime, the question of increased accumulation or further cooling of ETF activity in the near future is the main focus.
$ETH is currently approaching its second significant resistance area and the market is closely tracking this point. The recent price movement indicates that $ETH is gaining strength as it works towards the 3,300 to 3,400 price.
In the event that $ETH manages to retake this zone, it would be a resounding short term positive indicator and may lead to higher gains. Purchasers appear to be coming back slowly, which gives a chance of continuation rally.
But should ETH be repelled at this resistance, the probability is that ETH will revert. The next point to keep an eye on would be the support zone of $3,000 that would be key in supporting the larger bullish structure.
The recent alert by HSBC has made ripples on the market with the bank pointing to the growing levels of risks on the possibility of the $USDT losing its peg due to the recent downgrade of S&P Global.
This has already become a hot discussion in the crypto world and poses risks to traders who are extremely dependent on the liquidity of stable coins.
The rating has raised new questions regarding the stability of the $USDT particularly on the turbulent market times when the investors will rely on it as a safe haven.
With the alarm being raised by one of the largest financial institutions in the world, a number of them are beginning to re-evaluate their short term risk exposure and positioning.
As Tether has not lost its peg over several market cycles, the present macro environment makes this caution difficult to overlook. As long as the uncertainty keeps on building, there is a possibility that there will be capital flowing out into other stable coins or even to Bitcoin as traders insure against the possibility of instability.
Until now, the attention is still focused on the market performance of $USDT .
The next several days will be instrumental in deciding whether such a warning will develop into a genuine threat or another move in the crypto ecosystem that is temporary.
The latest downturn in the crypto market is raising new alarm in the mindset of investors and it seems to be leading to a definite move towards risk-off behavior.
With volatility soaring and liquidity constrained, traders are exiting aggressive positions and shifting to more secure allocations. This is gradually taking a new trend as the year ends approaches.
DBS Chief Economist Timor Baig believes that the ongoing crypto selloff is not merely yet another typical correction and it might be the best sign that the market is gearing up towards a more defensive backdrop. His remarks indicate that institutional traders are reevaluating their exposure and decreasing risk on big digital assets.
This risk off position may persist as we enter the new year as macro uncertainty increases and sentiment declines. Meanwhile it remains to be seen whether this is a cooling off period or the beginning of a wider reset as international markets respond in the next few weeks.
In the meantime, the message is straightforward: the crypto market is blinking red lights, and investors are keen to observe when the next momentum would take place.