Key Takeaways From the Bitcoin Whale Sell-Off
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Bitcoin fell below $100 K for the first time since June 2025.
400,000 BTC ($45 B) sold by long-term holders in one month.
Spot selling replaces leverage as the main driver of decline.
Open interest remains low; puts target $80 K.
Analysts expect the unwind to last up to 6 months, with potential downside to $85 K.
Bitcoin dropped below $100,000 for the first time since June as long-term holders offloaded roughly 400,000 BTC, worth about $45 billion. Analysts say the current decline marks a transition from leverage-driven liquidations to steady spot selling by whales taking profits after the summer rally.
Research firms including 10x Research and K33 note that conviction among major holders is weakening, and accumulation by mid-tier investors has fallen sharply. Market strategists now expect a slow correction through spring 2026, with potential downside toward $85,000.
Bitcoin Whales Dump $45 Billion, Sending Crypto Lower
The cryptocurrency market resumed its slide this week as Bitcoin fell 7.4%, dipping under $100,000 and extending its retreat to more than 20% from October’s record high.
Unlike the violent leveraged unwinds of the prior month, this sell-off has been spot-market-driven, signaling sustained profit-taking by large holders rather than forced margin calls.
Market Overview: Bitcoin Slips Below $100,000
Bitcoin traded near $99,500 in early Asia on Wednesday before trimming losses.
Data from CoinGlass showed $2 billion in crypto liquidations over 24 hours — a fraction of the $19 billion wiped out in October’s crash — while open interest in futures remains subdued.
Options traders have shifted bearish, building put positions targeting $80,000, reflecting hedging against further downside.
Spot Selling Replaces Leverage as the Driver
Analysts say the correction is no longer being triggered by leveraged liquidations but by spot selling from major wallets.
According to Markus Thielen, head of 10x Research, long-time holders sold 400,000 BTC—about $45 billion—over the past month.
“Mega whales began distributing holdings as institutional demand thinned after the October crash,” he said.
This structural shift has left the market “imbalanced,” with fewer new buyers absorbing the supply.
Whales and Long-Term Holders Lead the Exodus
Blockchain data supports that conclusion.
K33 Research found that 319,000 BTC held for six to twelve months were reactivated in recent weeks—evidence of large-scale profit-taking.
“While some movement reflects internal transfers, much of it is genuine selling,” said Vetle Lunde, K33’s head of research.
Thielen added that accumulation by addresses holding 100 to 1,000 BTC has “dropped sharply,” showing that mid-sized whales are no longer absorbing supply.
“The whales are just not buying,” he said.
Analysts Warn of Prolonged Unwind Into 2026
Thielen expects the current unwind to extend into next spring, drawing parallels with the 2021-2022 bear market, when large investors sold over 1 million BTC across 12 months.
He does not forecast a collapse but warns of further drift:
“I would assume we consolidate and potentially move a bit lower. $85,000 is my maximum downside target.”
The market, he says, is undergoing a conviction reset — where long-term holders lock in profits while new inflows remain cautious.
