Bitcoin Whales Are Buying the Dip – Should Retail Follow or Step Back?

Large institutional investors are buying Bitcoin, with Strategy Inc. acquiring 13,627 BTC to push its total holdings to 687,410 BTC. The firm's continued accumulation underscores long-term confidence in the asset.

On the Ethereum front, whale activity has shown mixed signals. An early Ethereum investor recently deposited 40,251 ETH worth $124 million into Bitstamp. The wallet, which originally purchased 154,076 ETH at an average price of $517, continues to gradually reduce its position.

Bitcoin price recently rebounded from a key support level at $90,000, trading above $92,000 as of early 2026. The asset is currently above the 50-day EMA, with bullish indicators like RSI and MACD suggesting potential for further gains.

Why Did This Happen?

Institutional demand is growing, with Bitcoin spot ETFs recording $116.67 million in inflows on January 11. Strategy Inc.'s CEO, Michael Saylor, highlighted the company's aggressive acquisition strategy, emphasizing Bitcoin's role as a store of value. This aligns with broader trends of institutional investors increasing exposure to crypto assets.

At the same time, Ethereum OG investors are offloading portions of their holdings. The wallet in question has reduced its ETH holdings from 154,076 to 26,000, suggesting a strategic partial exit rather than panic selling.

How Did Markets React?

Bitcoin's price action has shown resilience, supported by recent ETF inflows and corporate buying. The asset's RSI is above 50, indicating rising bullish momentum. However, traders remain cautious ahead of the U.S. CPI data release, which could introduce volatility.

Ethereum price action, on the other hand, has been more subdued. The continued selling by early investors has created short-term selling pressure, though most analysts see this as routine profit-taking during a consolidation phase.

The broader market is also affected by regulatory developments. The U.S. Senate is preparing markup hearings for the Digital Asset Market Clarity Act, a bill that could define how crypto assets are regulated and clarify the roles of the CFTC and SEC.

What Are Analysts Watching Next?

Analysts are closely monitoring both Ethereum and Bitcoin whale activity. Large outflows from Binance, with $1.25 billion in USDT leaving the exchange, and simultaneous whale accumulation of $4.7 billion in stablecoins suggest cautious repositioning.

Bitmine Immersion, a major ETH treasury firm, has staked 1.25 million ETH and acquired 24,266 ETH in the last week. The company's CEO, Thomas Lee, is urging shareholders to approve a share increase to avoid slowing down ETH accumulation. According to reports, the company is doubling down on ETH staking.

Bitcoin's price outlook remains tied to macroeconomic data, especially the upcoming CPI release. If the data surprises markets, the Federal Reserve's rate path could shift, introducing new volatility.

Retail investors are advised to closely watch institutional behavior and regulatory developments. While large investors continue to accumulate, the market's response to regulatory clarity could provide a major bullish or bearish catalyst.