Bitcoin has pulled back from its all-time high of $108,353. However, it holds steady above support at $100,000. Over 77% of the wallet addresses holding Bitcoin are profitable. The number of profitable wallet addresses is above 70% for most altcoins in the top 30 cryptocurrencies ranked by market capitalization. 

Crypto portfolios biased towards Bitcoin are currently outperforming as the largest crypto holds steady above its $100,000 milestone. With the altcoin season grinding to an abrupt halt before the holidays, traders with the majority of their holdings in alts are likely underwater, compared to Bitcoin’s rally. 

Bitcoin dominance rises, altcoin season ends

Bitcoin erased its recent gains from the rally to all-time high at $108,353 and is trading above $100,000. BTC dominance is an uptrend and this has likely contributed to the altcoin season’s abrupt end. 

Bitcoin’s dominance is a sign of relevance and demand for BTC among traders. BTC dominance is at 58.53%, the highest level since November 28. 

Blockchaincenter’s altcoin index evaluates whether 75% of the top 50 altcoins have outperformed Bitcoin in the last 90 days to determine whether it is “altcoin season.” The index reads 53, meaning the altcoin season has ended. 

Bitcoin outperforms major indices

 Bitcoin has rallied 136% on a year-to-date basis, comfortably outperforming the S&P 500 Index (SPX) and the Nasdaq Composite Index (NASX). 

The S&P 500 plunged nearly 3% yesterday, marking its second-worst day of 2024, after officials of the Federal Reserve signaled the likelihood of just two rate cuts next year. The Dow fell for the 10th straight trading day, its longest losing streak since 1974. 

Bitcoin’s year-to-date gains remain above 136%, identifying the asset as one of the top-performing ones in 2024. 

Earlier this month, asset management giant BlackRock recommended a 2% exposure to Bitcoin in multi-asset portfolios for benefits from BTC’s gains and balanced risk. An exposure higher than 2% could mean that the risk outweighs the benefits of including the largest cryptocurrency in a portfolio. 

Whales are buying these five altcoins

Activities of whales, crypto’s large wallet investors typically help identify tokens that could gain in the long-term. Historically, whale accumulation is followed by a rally in the token in the following weeks/ months, helping provide direction to retail traders on the sideline. 

On-chain intelligence from Lookonchain shows that whales are accumulating Chainlink (LINK), Ethena (ENA), Hyperliquid (HYPE), Ethereum (ETH), and Ondo (ONDO). 

Lookonchain identified a whale wallet that withdrew a total of 594,998 LINK worth $17.31 million from the largest centralized crypto exchange, Binance. 

Donald Trump backed World Liberty Financial, and whale wallets are accumulating ENA from Binance. 

Between December 7 and 18, a large wallet address deposited upwards of 17 million USDC and bought HYPE (worth $29.44 million, including unrealized profits). 

Lookonchain identified several whale addresses depositing funds into Hyperliquid to buy HYPE and PURR tokens. 

As the narrative of gains in the largest altcoin do the rounds, Lookonchain identified whale wallets accumulating Ether and Ondo this week. 

Experts say Bitcoin rally could extend in 2025

Aurelie Barthere, Principal Research Analyst at Nansen, told Crypto.news in an exclusive interview, 

“Institutional asset managers, pension funds, and buy-side investors might start integrating crypto into standard allocations—e.g., transitioning from a traditional 60/40 equity- bond split to 55/40/5 (equity/bond/crypto). This comes from a feeling of “missing out” on the past 40% BTC rally three weeks after the election. Can investors afford not to be allocated at all to crypto going forward? 

Proposals like Senator Lummis’s initiative to establish Bitcoin as a reserve currency would boost this trend if only partly implemented (although the likelihood of this proposal materializing is rather low in our view, especially prior to 2026 under the current Fed’s leadership).

Further, Bitcoin’s growing role as collateral in both traditional lending and DeFi is exemplified by partnerships like Cantor Fitzgerald’s $2 billion Bitcoin lending talks with Tether.”

Bitfinex Analysts believe there is a strong institutional demand for Bitcoin, led by ETFs and spot BTC accumulation. Their projection for 2025 is:

“Looking ahead, we believe the current run-up to over $100,000 has captured a significant portion of Bitcoinʼs price appreciation for this cycle. Our minimum price target for Bitcoin remains at $140,000 to $200,000 around mid-2025.”

David Morrison, Senior Market Analyst at Trade Nation, shared the following comments on sentiment among market participants, with Crypto.news:

“Fed Chair Jerome Powell also explained that the Federal Reserve was not currently allowed to hold a strategic reserve of cryptos as some have speculated. That may have dented sentiment further, although gambling on the chance of a US strategic reserve of crypto probably isn’t wise.

Bitcoin dipped back below $100,000 overnight, but has since recovered. It doesn’t look as if positive sentiment has been severely damaged so far.”