Bitcoin Drops to $96K as Whales Sell $290M in BTC

The cryptocurrency market witnessed significant whale activity as trader Owen Gunden moved 2,400 Bitcoin—approximately $237 million—onto the Kraken exchange, according to blockchain watcher Arkham. This transfer represented a substantial portion of Gunden’s holdings, with subsequent reports indicating he deposited a total of $290.7 million worth of Bitcoin into Kraken, leaving him with only $250 million remaining. The movement was tracked and publicly disclosed by Arkham, highlighting the transparency of blockchain transactions and their immediate market impact.

Analysis from Glassnode reveals a broader pattern of long-term holder distribution that extends beyond individual whale activity. The data shows long-term holders’ average daily spending has more than doubled from approximately 12,000 BTC per day in early July to roughly 26,000 BTC per day as of this week. Glassnode analysts characterize this pattern as ‘orderly distribution by older holders rather than a sudden mass exit,’ framing it as late-cycle profit-taking that is regular, steady, and spread out over time.

This steady increase in distribution pressure from older investor cohorts reflects a maturing market cycle where early adopters and long-term holders are systematically realizing profits. The 30-day simple moving average of long-term holder spending has climbed from roughly 12,500 BTC/day in early July to 26,500 BTC/day currently, indicating sustained selling pressure that has contributed to the recent price correction.

As Bitcoin fell below $100,000 for the second time this month, social sentiment turned sharply negative according to data from Santiment. The price drop triggered what Santiment described as ‘a wave of FUD and concerned social media posts from retail traders,’ reflecting the psychological impact of breaking key psychological support levels. The Crypto Fear & Greed Index plummeted to 15, indicating ‘extreme fear’ among market participants and contrasting sharply with the bullish sentiment that had previously dominated the market.

The shift in sentiment comes as Bitcoin’s net unrealized profit ratio stood near 0.476, a level that some traders interpret as hinting at short-term lows forming. However, as Vincent Liu, CIO at Kronos Research, cautioned, this reading is only one of several signals that must be tracked alongside liquidity and macro conditions. The combination of technical indicators and sentiment metrics paints a picture of a market undergoing a significant psychological adjustment after an extended period of gains.

The cryptocurrency sell-off coincided with substantial institutional selling pressure, with firms including BlackRock, Binance, and Wintermute reportedly selling more than $1 billion in Bitcoin collectively. This wave of institutional selling produced a rapid 5% price drop within minutes, demonstrating the amplified impact that large-scale institutional transactions can have in current market conditions. The concentrated nature of these sales overwhelmed buying pressure and accelerated the downward momentum.

Broader financial markets also showed weakness, with the Nasdaq declining 2% and the S&P 500 falling 1.3%. Cryptocurrency-related stocks suffered even steeper losses, with Cipher Mining falling 14%, Riot Platforms and Hut 8 dropping 13%, and MARA Holdings and Bitmine Immersion sliding over 10%. Coinbase and other crypto-adjacent companies saw declines of approximately 7%, reflecting the interconnected nature of digital asset markets and traditional equity markets during periods of risk aversion.

Vincent Liu of Kronos Research provided crucial context for interpreting the current market phase, noting that ‘structured selling and steady rotation of gains often show up in late-cycle phases.’ He emphasized that being in a late cycle doesn’t automatically signal a final market peak, provided there are still buyers ready to absorb the extra supply. Liu characterized the current environment as one where ‘momentum has eased, and bigger forces like macro trends and liquidity are now in control.’

Liu specifically addressed concerns about a market collapse, stating clearly: ‘There’s no meltdown or anything like it.’ He attributed the slowed climb to ‘rate-cut doubts and recent market weakness’ rather than fundamental breakdown. This perspective aligns with the Glassnode analysis of orderly distribution, suggesting that what appears as concerning selling pressure may actually represent healthy profit-taking within a normal market cycle rather than panic-driven capitulation.

The current market conditions reflect the complex interplay between whale activity, institutional flows, retail sentiment, and broader macroeconomic factors. While the price drop to $96,000 and the extreme fear readings understandably concern market participants, the analytical framework provided by industry experts suggests this may represent a necessary consolidation phase within a broader bull market rather than the beginning of a sustained downturn.