Bitcoin has experienced a sharp 12% drop over the past seven days, sending shockwaves through the market. This significant decline has erased much of the cryptocurrency’s recent gains, sparking concerns among investors. The downturn has been fueled by a combination of rising losses, panic selling, and notable whale activity that has added pressure on the price.
Whale Exits and Institutional Pullbacks Add to Market Turmoil
On-chain analytics show that realized losses have surged dramatically, reaching levels last seen during the FTX collapse. A large number of recent Bitcoin buyers are now facing steep losses, leading them to sell their holdings at a loss. According to Glassnode’s data, the amount of short-term holder supply in loss has jumped, amplifying the bearish sentiment in the market.
Adding to the turbulence, whale activity has also played a key role in the price drop. Arkham Intelligence reported that one prominent early adopter, Owen Gunden, has liquidated a staggering 11,000 BTC worth around $1.3 billion since late October. The final transfer of these coins to Kraken this week marks one of the largest exits of the year, creating immediate downward pressure on Bitcoin’s price.
Institutional flows have also been unfavorable. Large institutions are pulling back from the market, with Bitcoin ETFs seeing significant outflows. BlackRock’s Bitcoin ETF, IBIT, saw a withdrawal of $523 million in mid-November, signaling growing caution among institutional investors. This withdrawal of capital further removes buying support for the cryptocurrency, compounding the price decline.
Critical Price Levels in Focus as Bitcoin Faces Further Uncertainty
With Bitcoin’s price now hovering around $84,482, the $80,000 to $82,000 range has become a critical price level. According to crypto analyst Ted Pillows, a large number of buy orders are stacked between these levels, which may help prevent further declines. However, if this support fails to hold, Bitcoin could drop as low as $74,000, adding to the market’s bearish outlook.
As the market grapples with a series of negative signals, the future direction of Bitcoin remains uncertain. The next few days will be crucial in determining whether the price can stabilize or if further losses are on the horizon. The ongoing selling pressure from both individual investors and whales will likely continue to influence Bitcoin’s price in the coming weeks.