New Year's Eve Wealth Shift: Gold Peaks, Whales Face Losses, Funds Flow into Crypto

According to the latest news, BTC OG insider whale agent pointed out that the prices of gold and silver have reached their respective highs, and market funds are rotating into the cryptocurrency sector. The significance of this signal lies not only in the shift of asset allocation but also in reflecting the current deep game in the market — although bullish whales are floating large losses, they still stubbornly hold their positions, while bears are beginning to gather unusual movements. A silent battle for wealth is unfolding.

The Logical Chain of Asset Rotation

A peak in traditional assets often signals the start of a rally in the crypto market. As representatives of safe-haven assets, what does it mean when gold and silver prices hit their highs?

It indicates that the market’s concerns about economic prospects may have been fully priced in. When traditional safe-haven assets lose their appeal, incremental funds will naturally seek new sources of returns. According to data, the global stock market in 2025 experienced its largest increase in six years, with about 94% of stocks remaining above the 200-day moving average, suggesting that risk assets are generally optimistic.

Against this backdrop, the appeal of cryptocurrencies as high-yield assets is re-emerging. Especially with the Federal Reserve expected to keep interest rates unchanged in January next year (probability 85.1%), liquidity remains relatively loose, providing conditions for fund rotation.

Bullish Whales’ “Faithful Defense” and “Being Trapped”

Another detail worth noting in this rotation is the attitude of bullish whales.

Based on on-chain monitoring data, a top player known as the “BTC OG insider whale” currently has an unrealized loss of about $39.4 million, with ETH long positions floating a loss of $34.2 million. Despite these losses, this account still holds approximately $605 million in ETH and maintains long positions in BTC, SOL, and others, with a total position size of about $758 million.

This suggests two possible scenarios:

• Either they are extremely confident, believing that the subsequent rise will be enough to cover the current losses
• Or they are already “trapped” by the market, caught between options, unable to safely close their positions

Either way, it hints that the market may be at a critical moment. Large capital position decisions are often leading indicators of market turning points.

Bearish Movements and Risk Signals

Contrasting with the “dead hold” of bulls is the “gathering” of bears.

According to information, addresses focused on shorting, such as the “Ultimate Short” and “Shanzhai Short Army Leader,” have begun to simultaneously deploy short positions on coins like LIT, with decisive actions and aligned directions. This is not random operation but a reorganization of funds. Meanwhile, some whales are choosing to close ETH short positions at high levels and withdraw from the battlefield.

This reshuffling of long and short camps usually indicates an imminent market reversal. Once high-leverage longs come under pressure, chain reactions of liquidations can be triggered, and active shorts will further accelerate this process.

Market Sentiment at a Freezing Point and Opportunities

From the perspective of market sentiment, the current state is in extreme fear. The weekly RSI has fallen into oversold territory, and the Fear & Greed Index has dropped to extreme fear, with pessimistic voices flooding social media. Such emotional lows often signal a bottom.

But more importantly, institutions and whales are starting to accumulate. Although BTC has been consolidating for nearly a month after a high point correction, the selling pressure has begun to weaken, indicating that market selling is gradually diminishing. The quiet entry of funds contrasts sharply with the extreme pessimism.

Possible Future Trends

According to the views of the BTC OG whale agent, capital inflows may continue, and upward momentum could accelerate, potentially triggering short squeeze events, with little to no significant retracement during the process. This suggests that if the fund rotation indeed unfolds, the crypto market could face a relatively rapid upward move.

However, caution is needed: the floating losses of bullish whales and the gathering of bears also pose risks. If prices fail to break through effectively, high-leverage longs could be liquidated, causing a short-term correction.

Summary

The peak of gold and silver assets signals a turning point in traditional asset allocation, with funds rotating into the crypto sector. Although bullish whales are floating large losses, their steadfast belief is itself a bet on the market’s future. The movements of bears warn that a market reversal may be imminent, and the risks associated with high-leverage positions should be watched carefully.

From the broader logic of asset rotation, the crypto market indeed has conditions to attract incremental funds. But from the details of the bulls and bears confrontation, uncertainties remain. The key upcoming indicators are the scale and rhythm of capital inflows and the changes in whale positions. These two metrics will directly determine whether the market can break out of its current predicament.