Bitcoin Price Divergence Sparks Rotation Speculation Amid $88,000 Trading

The cryptocurrency market is experiencing price divergence as Bitcoin dropped 20% since early November while gold climbed 9% and the S&P 500 gained 1%, according to market intelligence firm Santiment. As of Wednesday, Bitcoin traded near $88,000, leaving markets quieter than traditional assets that showed modest rebounds.

Santiment data shows whale wallets held steady through most of 2025, selling only after Bitcoin reached an all-time high in October. Small wallets bought heavily in the second half of the year. Long-term holders reduced their positions from 14.8 million coins in mid-July to 14.3 million by December, then stopped selling.

Active Bitcoin addresses rose 5.51% in the last 24 hours, yet transactions fell nearly 30% over the same window. Analysts believe this rotation may signal a shift in capital allocation between markets as opportunities change. 'Capital is the same and as always, it is wise to sell high and buy low,' said Garrett Jin, former head of exchange BitForex.