Bitcoin Plunges to $86K as OG Whale Sells $1.3B Holdings

The most striking development in Bitcoin’s recent downturn comes from blockchain intelligence firm Arkham, which tracked the complete liquidation of Owen Gunden’s Bitcoin holdings. Gunden, described as a “Bitcoin OG” who had held the cryptocurrency since 2011, has sold his entire position of 11,000 BTC worth $1.3 billion in a series of transactions beginning in October. The final chapter of this massive selloff occurred earlier today when Arkham detected a $230 million Bitcoin transfer to cryptocurrency exchange Kraken, marking Gunden’s complete exit from the market after 14 years of holding.

This sustained selling pressure from a long-term holder represents a significant shift in market dynamics. While some whales have been accumulating Bitcoin during the recent price decline, Gunden’s decision to liquidate his entire $1.3 billion position stands in stark contrast. The timing of these sales has coincided with Bitcoin’s sharp descent from over $107,000 to current levels, suggesting that the whale’s actions may have contributed to accelerating the downward momentum.

The broader market impact of Bitcoin’s decline has been severe, with data from CoinGlass revealing over $410 million in long position liquidations for Bitcoin alone during the past 24 hours. Across the entire cryptocurrency market, liquidations approached $900 million, with the single largest liquidation order occurring on exchange HTX and valued at over $30 million. These figures underscore the intensity of the selling pressure and the significant leverage being unwound throughout the market.

Technical analysts are now closely monitoring key support levels that could potentially halt the freefall. According to market commentator CW, a significant buying wall exists at $85,000, which could serve as the first line of defense against further declines. However, the situation remains precarious, with prominent analyst The Wolf Of All Streets warning that Bitcoin’s position could turn “truly disgusting” if prices approach the 200-day moving average situated around $55,000. This would represent a further 36% decline from current levels.

The contrasting behavior among major Bitcoin holders adds complexity to the current market narrative. While Gunden’s complete exit represents a bearish signal from a long-term perspective, reports indicate other whales have been accumulating during the price decline. This divergence highlights the uncertainty surrounding Bitcoin’s near-term direction and suggests that institutional and large players remain divided on the cryptocurrency’s prospects.

The current market structure, characterized by massive liquidations, whale selling, and broken technical levels, creates a challenging environment for Bitcoin to find stable footing. The $86,000 level represents a critical psychological threshold, being Bitcoin’s lowest point since April, and its breach has triggered renewed concerns about the sustainability of the cryptocurrency’s bull market. With Gunden’s $1.3 billion liquidation complete, market participants will be watching closely to see whether other long-term holders follow suit or whether the accumulating whales can provide sufficient support to stabilize prices.