Bitcoin whale exchange activity rises amid thin liquidity, risking early 2026 recovery

Beincrypto reports on-chain data shows Bitcoin whales are increasing exchange activity in early 2026, a development that market watchers say could threaten the recent price recovery amid fragile liquidity. One notable metric, the All Exchanges Whale Ratio (EMA14), has climbed to its highest level in ten months; the ratio measures the top 10 inflows relative to total exchange inflows.

Although exchange reserves have trended downward due to demand from DATs and ETFs, CryptoOnchain, an analyst at CryptoQuant, said "This development coincides with Bitcoin’s price attempting a recovery after a corrective phase. The pattern suggests a potential strategy by whales to capitalize on buy-side liquidity to take profits and use the current market as exit liquidity." Glassnode added that spot trading volume for Bitcoin and altcoins has fallen to its lowest level since November 2023, noting "This weakening demand contrasts sharply with upside moves across the market" and highlighting thin liquidity behind recent strength.

Analyst Willy Woo also flagged a sharp decline in transaction fees and described the market as a "ghost town," with mempool and fee metrics at record lows. What happens next is uncertain: Woo expects a potential short-term pump in January as liquidity hits a local bottom, but he and other observers see a more bearish longer-term outlook amid low on-chain activity.

Key Topics

Crypto, Bitcoin, Bitcoin Whales, Cryptoquant, Glassnode, Willy Woo