Bitcoin Shows Warning Signs Amid Whale Activity and Negative Altcoin Correlation, Suggesting Possible Market Shift

Key Points

1. Bitcoin whale-to-exchange flows spiked to $45 billion between July 14 and July 18, 2025, a potential precursor to market corrections, as past peaks saw inflows exceeding $75 billion.

2. Bitcoin Coin Days Destroyed (CDD) reached a yearly high in July 2025, with a 30-day average surpassing 31 million, indicating significant movement of long-held coins, often associated with market tops or redistribution.

3. The altcoin-Bitcoin correlation turned negative, suggesting altcoins are outperforming Bitcoin, a pattern previously followed by Bitcoin price declines in January and May 2025.

4. Analysts warn that low correlation periods historically precede market turbulence, including mass liquidations, and highlight uneven institutional interest driving the current bull run.

5. Despite Bitcoin's strong four-month rally, on-chain metrics like whale activity and CDD suggest potential volatility ahead.