Bitcoin Drops to $90.6K as Whale Activity Cools Off — Is This Just the Calm Before the Storm?

Bitcoin’s having a rough start to the week — and the year. The price dipped below $90,600, marking its lowest point since November and extending its monthly losses to over 11%. But while things may look bleak on the surface, some market watchers are saying this dip might be nothing more than a post-halving tradition.

Whale Watching: Activity Down 50%

According to on-chain data shared by analyst Ali Martinez, the number of large Bitcoin transactions — usually tied to whales — has dropped by over 50% in the past month. That’s a big deal, considering these big-money players often set the tone for the broader market.

Even network activity is slowing down. Active Bitcoin addresses have fallen to around 667,100, the lowest we’ve seen since November. This means fewer people are moving BTC around, which usually translates to less short-term price action and a generally quieter market.

A Familiar January Pattern?

Despite the bearish vibes, this slump isn’t totally unexpected — at least according to historical data. Analyst Axel Bitblaze pointed out that post-halving years often start off sluggish. Take 2017 and 2021, for example:

• January 2017: BTC dropped from $1,185 to $800
  
• January 2021: BTC dropped from $42,000 to $28,000
  
• January 2025: So far, down from $103,000 to the low $90Ks
  

Each of those years followed a halving and saw a major recovery later. If history repeats, this could just be Bitcoin’s classic early-year shakeout.

Altcoins Gaining Steam

Another interesting twist: Bitcoin’s dominance has slipped from 62% to 54%, meaning altcoins are grabbing a bigger slice of the pie. This shift often signals a changing market narrative and can foreshadow an upcoming alt season.

Eyes on the Macro

Bitblaze and others also pointed out that macro factors — like potential interest rate cuts and increased capital flows — could create the perfect storm for another BTC breakout. On-chain metrics like SOPR (which shows if holders are selling at a profit or loss) suggest this might actually be a good accumulation zone.

Crypto YouTuber Crypto Rover agrees, saying Bitcoin has dropped in the first half of nearly every month for the past year — only to bounce back later. He called this dip “small” and says a second-half rebound is “inevitable.”