Bitcoin recently fell below the critical $100,000 mark, with accelerated selling by "whales" (large cryptocurrency holders) and long-term investors contributing significantly to the recent price weakness.
Most blockchain analytics firms define "whales" as individuals or institutions holding 1,000 or more Bitcoin. While many whale identities remain unknown, blockchain data can track their activity through cryptocurrency wallets.
Data shows some whales have recently increased their Bitcoin selling pace. Analysts note this trend warrants attention but may not indicate panic. They suggest the selling likely reflects steady profit-taking rather than distress, mirroring patterns seen in previous bull cycles.
Martin Leinweber, Digital Asset Research and Strategy Lead at MarketVector Indexes, described this as "planned asset distribution." He explained, "Some Bitcoin investors bought at single-digit prices and waited years. Now there's sufficient liquidity to sell without disrupting markets."
Despite recent liquidity concerns raised by crypto bulls, Bitcoin's tradability has improved dramatically compared to a decade ago.
However, CryptoQuant analysts warn that whale selling coincides with deteriorating market sentiment and slowing buy-side activity, potentially adding downward pressure. Dow Jones Market Data shows Bitcoin briefly touched $19,400 last Friday, its lowest level since May 6.
Historical Context Long-term holder sell-offs aren't unique to this cycle. Glassnode analysts note recent selling appears profit-driven rather than panic-induced. Specifically, wallets holding Bitcoin over seven years and selling 1,000+ BTC hourly show consistent, measured selling patterns (data through November 13).
The $100,000 Threshold Cory Klippsten, CEO of Swan Bitcoin, observes that whale selling in recent months correlates with the $100,000 level—a psychological profit-taking benchmark for early adopters. "Since entering this space in 2017, many early holders discussed $100,000 as their target to partially exit," Klippsten noted. Glassnode data confirms increased long-term holder selling since Bitcoin first surpassed $100,000 in December 2024.
Warning Signs CryptoQuant highlights weakening market absorption of sell-offs. While buyers previously absorbed long-term holder sales, this dynamic appears to be shifting. Investment product flows reflect softening demand—Bitcoin ETFs saw $311.3 million in outflows last week, potentially marking a fifth consecutive week of withdrawals, the longest streak since March.
Over five weeks, Bitcoin ETF outflows totaled $2.6 billion, the largest such period since late March. Technical analysts warn that failure to reclaim $100,000 could trigger further profit-taking.
Macroeconomic headwinds also pressure risk assets. Joel Kruger of LMAX Group notes excessive Q4 optimism led to long position liquidations: "We entered Q4 with overextended expectations based on historical seasonal strength." Rising doubts about Fed rate cuts and weak labor data have further pressured Bitcoin.
Saylor Keeps Buying Amid the sell-off, prominent whale Michael Saylor's Strategy Inc. continues accumulating Bitcoin. The firm, holding over 640,000 BTC (3% of circulating supply), announced plans to disclose accelerated purchases this Monday.