Bitcoin’s price remains steady just below the $100,000 milestone, yet major cryptocurrency holders, known as whales, are choosing to play it safe. According to crypto analyst Onat Tutunculer from CryptoQuant, while there is no immediate selling pressure, significant inflows of Bitcoin into exchanges hint at a potential for future market volatility.

These movements suggest that whales—investors who hold large quantities of Bitcoin—are adopting a “wait-and-see” strategy, closely monitoring market dynamics before making significant moves.

Rising Exchange Inflows Signal Caution

In a recent report, Tutunculer pointed out the increase in Bitcoin inflows to exchanges, particularly after former President Donald Trump’s re-election victory on Nov. 5. Historically, such movements often precede large sell-offs. However, the current scenario deviates from this pattern, as whales appear reluctant to offload their holdings just yet.

This cautious stance aligns with the Adjusted Spent Output Profit Ratio (a SOPR) metric, which measures profitability in Bitcoin transactions. The metric indicates that profit-taking activity remains subdued, a sign that major holders are not rushing to cash out.

“Although there is currently no immediate selling pressure, the rising inflow of Bitcoin into exchanges highlights a potential risk of future sell-offs,” Tutunculer stated.

Bitcoin Dominance and Market Sentiment

Bitcoin’s dominance in the crypto market—a measure of its share of the total market capitalization—has been declining. Since Nov. 28, BTC dominance has dropped by 5.54%, suggesting a potential rotation of capital into altcoins as traders explore other opportunities.

At the time of writing, Bitcoin is trading at $95,809, slightly below its recent high of $99,800 reached on Nov. 22. Despite being tantalizingly close to the $100,000 mark, the psychological barrier remains unbroken.

Skepticism Surrounding Bitcoin’s $100,000 Target

While Bitcoin enthusiasts have long anticipated a six-figure valuation, some market observers remain doubtful it will reach $100,000 by the end of 2024.

Pseudonymous trader Rekt Capital noted on Dec. 3 that Bitcoin continues to retest support levels near $96,400 but is also showing signs of extended downside wicks—a potential indication of market hesitancy.

Others, like Ramp Network CEO Szymon Sypniewicz, have expressed mixed feelings. While he believes Bitcoin will eventually surpass $110,000, he cautions that the journey may involve considerable fluctuations.

“While reaching $110,000 for Bitcoin seems inevitable at some point, it’s uncertain whether it will happen before the end of the year, as we can expect the market to experience some ups and downs along the way,” Sypniewicz said.

Long-Term Holders in Profitable Territory

One factor bolstering Bitcoin’s resilience is the position of long-term holders, who have held BTC for over 155 days. Data shows that the average price paid by these investors is $24,994, putting them at a staggering 3,800% profit at the current price levels. This significant profitability may provide a cushion against major sell-offs, as long-term holders have less immediate need to liquidate their assets.

Market Outlook: What Lies Ahead?

The cautious approach by whales underscores the uncertainty surrounding Bitcoin’s next big move. As the cryptocurrency approaches the psychological barrier of $100,000, market participants are likely to remain vigilant.

Factors such as broader economic conditions, regulatory developments, and shifts in market sentiment will play a key role in determining whether Bitcoin can break through its all-time high. For now, all eyes remain on the whales, whose actions could significantly influence the market’s trajectory.