Recently, the Bitcoin market has been oscillating around $100,000, and an interesting phenomenon has emerged. Large holders with over 1,000 Bitcoins have started gradually reducing their holdings, while small retail investors continue to buy in steadily. On the surface, it looks like the big players are fleeing, but a deeper analysis of on-chain data reveals that the situation is much more complex.

Let's look at the data first. Over the past month, net outflows of funds from spot Bitcoin ETFs amounted to about $2.8 billion, which can easily give the impression that institutions are exiting en masse. However, a closer look at the whale wallets holding over 10,000 Bitcoins shows that their balances only decreased by 1.5% in October. This decline is hardly a fire sale; in fact, it can be considered quite moderate.

The key is to understand where these funds are going. Whales are not panic-selling; they are taking profits during periods when ETF demand isn't strong enough. This kind of operation has been repeated across past market cycles: when capital inflows and liquidity conditions improve, these strategic rebalancing actions often set the stage for subsequent upward trends by readjusting market positions and volatility structures.

In other words, seasoned players are engaging in the common practice seen on major exchanges—rotating positions at the end of a cycle to prepare for the next rally. They are not leaving the market; they are simply shifting funds from one pocket to another.