Bitcoin Whales Plunge As BTC Price Falls Below $90K — Why Are Big Players Leaving?

Core Insights - The number of Bitcoin whales, defined as holders of more than 1,000 Bitcoin, is decreasing, raising concerns in the industry as Bitcoin's price has fallen below $90,000 for the first time since April [1][3][4] - A significant drop in Bitcoin's price, over 13% in the past week, has been attributed to macroeconomic factors and reduced liquidity, impacting market stability [5][3] - Analysts suggest that the retreat of Bitcoin whales is linked to a combination of price movements, strategic rebalancing, and changing macroeconomic conditions [9] Market Dynamics - Citi estimates that approximately $1 billion in weekly spot inflows can increase Bitcoin's price by about 4%, indicating that the current slowdown in demand is limiting market liquidity [2] - The trend of decreasing whale holdings does not necessarily imply aggressive selling but indicates a weakening concentration among major Bitcoin holders [4] - Wallets holding more than 10,000 Bitcoin reduced their holdings by around 1.5% in October, reflecting a broader trend among large holders [4] Price Movements - Bitcoin's price has dropped from record highs above $126,000 to around $104,783 during October, influenced by significant market events [9] - The recent downturn has pushed Bitcoin below its 50-week moving average, a critical level that had been maintained throughout the current cycle, reminiscent of previous market reversals [8][7] - The current market conditions are being compared to the early stages of past bear markets, suggesting a potential prolonged downturn [6][7]