Bitcoin, along with other cryptocurrencies and the newly launched token associated with Donald Trump, declined on Tuesday as the presidents initial policies post-inauguration failed to address the crypto market. Bitcoin had reached a record high of over $109,000 on Monday ahead of Trumps swearing-in as the 47th US president but began to retreat shortly afterward.

However, new data revealed renewed Bitcoin whale activity.

Bitcoin Drops, Whales Accumulate

According to the latest analysis shared by Santiment, wallets holding 10+ BTC have been accumulating 1,002 Bitcoin daily over the past five days. This reflects a positive accumulation trend, contributing to a 2.8% price increase in the same period. Over the last six months, the on-chain analytic platform has identified five distinct accumulation cycles, each with varying impacts on Bitcoins price trajectory.

From July 20 to October 11, whales accumulated 164 BTC daily, coinciding with a 7.3% price decline. This trend shifted dramatically from October 11 to November 5, with 884 BTC added daily, resulting in a 9.8% price rise. The most significant accumulation occurred from November 5 to December 26, where 2,060 BTC per day were added, driving a 35.8% price surge. However, the December 26 to January 15 period saw slower activity, with 156 BTC added daily and a modest 6.2% price increase.

The current phase suggests renewed interest, as the 1,002 BTC daily accumulation indicates large wallet holders confidence in Bitcoins upward potential. Santiment highlighted the importance of monitoring whale and shark behavior as a predictive market indicator. High accumulation rates often signify optimism among key stakeholders, whereas stagnation or declining holdings may signal market volatility or corrections.

Volatility Ahead?

Trumps inauguration sparked speculation about crypto-related executive orders, fueling significant front-end volatility. Markets saw a gradual sell-off, erasing $816 million in long positions. As such, QCP Capital updated that Bitcoin volatility remains high, with the curve in backwardation. Trumps tariff threats added to the uncertain climate, signaling more volatility ahead.

While markets anticipate a potential national strategic Bitcoin stockpile, states like Texas and Massachusetts are proposing independent crypto reserves as markets await Trump’s potential BTC policies. Meanwhile, the trading firm also added that elevated short-term volatility would continue, with key events like the MicroStrategy shareholder vote adding further uncertainty.