Bitcoin dips below $90K as whale activity declines

Bitcoin (CRYPTO:BTC) has experienced a notable decline, falling below $90,600 for the first time since November, marking a significant downturn in the cryptocurrency market.

The price drop of nearly 4% over the past day extends Bitcoin's monthly losses to 11%, reflecting a broader trend of subdued market activity.

Crypto analyst Ali Martinez reported a sharp decrease in large transactions on the Bitcoin network, indicating reduced engagement from "whales," or major investors.

The number of large transactions fell by 51.64% in the past month, from 33,450 to 16,180, which often signifies a cooling market.

Moreover, the total number of active addresses on the Bitcoin network has dropped to 667,100, its lowest since November 2024.

This decline points to waning interest from both retail and institutional investors.

Despite these challenges, some analysts argue that Bitcoin's January slump is consistent with historical trends observed in previous post-halving years.

Axel Bitblaze noted that similar patterns occurred in January during the years 2017 and 2021, where Bitcoin saw significant declines before entering notable bull runs.

For instance, Bitcoin fell from $1,185 to $800 in January 2017 and from $42,000 to $28,000 in January 2021.

Bitblaze also highlighted that Bitcoin dominance typically peaks nearly three years after a halving event.

Recently, this metric has decreased from 62% to 54%, as altcoins have gained traction.

Looking ahead, liquidity will be crucial for the crypto market.

Analysts speculate that potential economic policies aimed at lowering interest rates could create a favorable environment for Bitcoin's recovery.

On-chain indicators suggest that periods of market pain may present accumulation opportunities for investors.

YouTuber Crypto Rover echoed this sentiment, describing the current dip as "small" and predicting an inevitable bounce in the latter half of January.

At the time of reporting, the Bitcoin (BTC) price was $94,792.39.