Whales are Shifting Strategies: Bitcoin’s Grip Faces a New Test

Although Bitcoin $111,266 maintains its dominance in the market, recent blockchain data indicates a significant shift in the approach of large-scale investors, known as whales, since early July. According to CryptoQuant, 10,000 BTC were withdrawn from exchanges on July 7, marking the most substantial outflow in recent weeks and suggesting a rising trend towards asset holding. On the following day, Santiment reported a sharp increase in whale transactions exceeding $1 million. Despite Bitcoin’s renewed highs, this activity depicts a potential shift of some investors towards altcoins in search of higher returns. The total market capitalization has risen to $3.47 trillion, with the Crypto Fear and Greed Index signaling greed at a level of 71. Bitcoin’s market dominance stands at 63.8%.

Are Whales Moving From Bitcoin to Altcoins?

CoinMarketCap’s Altcoin Season Index is currently at 27/100, indicating that a complete capital rotation isn’t yet confirmed. Nonetheless, leading altcoins like Ethereum $2,778 and Solana $157 are showing price movements breaking out of consolidation, with an accumulation in whale wallets. Moreover, stablecoin inflows to altcoin-heavy exchanges have accelerated during this period. This trend implies that major players seeking high risk–reward dynamics are increasingly looking beyond Bitcoin.

On the technical side, Bitcoin faces strong resistance just below its new record high. Indicators like RSI and MACD suggest possible short-term cooling as they signal overheating. In contrast, altcoins, with their relatively low dominance ratios, have ample room for upwards movement. Price surges beginning July 9 highlight how portfolio diversification among whales can accelerate price movements.

What Does Blockchain Data Reveal for Altcoins?

Bitcoin outflows from exchanges typically indicate long-term holding intentions. Since the first week of July, the negative net flows to exchanges strongly confirm the holding motive.

Santiment’s data on July 8 show a whale transaction spike interpreted in dual ways: Some are taking profits while others are making new purchases.

The timing of this data, arriving just before a price explosion, suggests it’s not coincidental. Meanwhile, stablecoin movements substantiate the shift of whale wallets toward altcoin exchanges, maintaining the expectation of a potential mini altcoin rally.