Bitcoin fell to $96,000 on Friday amid heavy selling and declining risk appetite, leaving traders and analysts to debate whether this is routine profit-taking or a more significant market shift.
On-chain and market data show the drop liquidated over $700 million in long positions, putting November’s losses above 10%.
Attention turned to large transfers after reports revealed that a wallet linked to trader Owen Gunden moved 2,400 Bitcoin—worth around $237 million—to the Kraken exchange, a transaction monitored by Arkham.
Glassnode analysis indicates that daily spending by long-term Bitcoin holders has increased from just over 12,000 BTC per day in early July to about 26,000 BTC per day this week. Analysts describe this pattern as orderly distribution by long-term holders rather than a sudden mass exit, framing it as typical late-cycle profit-taking—steady, regular, and spread out.
Santiment reported that Bitcoin dropped below $100,000 for the second time this month, sparking a wave of fear and worried social media posts from retail traders.
Vincent Liu, CIO at Kronos Research, noted that structured selling and steady profit rotation are common in late-cycle phases. He emphasized that this doesn’t necessarily mean the market has peaked, especially if buyers are still available to absorb the extra supply. According to Liu, being in a late cycle indicates that momentum has slowed, with larger factors like macroeconomic trends and liquidity now driving the market. He added that doubts over interest rate cuts and recent market softness have slowed Bitcoin’s rise but not ended it.
On-chain metrics are being closely watched. Bitcoin’s net unrealized profit ratio stood near 0.476—a level some traders see as a potential signal of short-term lows. Liu cautioned, however, that this is just one indicator and must be considered alongside liquidity and macroeconomic conditions.
The cryptocurrency sell-off coincided with sharp declines in crypto-related stocks and broader market weakness. The Nasdaq fell 2%, and the S&P 500 dropped 1.3%. Cipher Mining slid 14%, while Riot Platforms and Hut 8 each fell 13%. MARA Holdings and Bitmine Immersion lost over 10%, and Coinbase and Strategy declined around 7%.
Reports also indicated that large institutional players, including BlackRock, Binance, and Wintermute, sold more than $1 billion in Bitcoin, causing a rapid 5% drop in minutes.
Social sentiment turned sharply negative, and the Crypto Fear & Greed Index hit 15, signaling “extreme fear” among traders.
Featured image from Unsplash, chart from TradingView.
Frequently Asked Questions
Of course Here is a list of FAQs about the topic Dont Worry Analysts Say Bitcoin Whale Selling Doesnt Signal a Crypto Collapse designed to be clear concise and in a natural tone
BeginnerLevel Questions
1 What is a Bitcoin whale
A Bitcoin whale is an individual or entity that holds a very large amount of Bitcoin Their transactions are so big that they can noticeably influence the market price
2 Why is a whale selling a big deal
When a whale sells a massive amount of Bitcoin it can create a sudden surge in supply on the market If demand doesnt keep up this can cause the price to drop sharply making other investors nervous
3 So if a whale is selling should I panic and sell too
Not necessarily Analysts in the article suggest that isolated whale selling doesnt automatically mean a full market collapse is coming Its just one piece of a much larger puzzle
4 What else affects Bitcoins price besides whale sales
Many other factors play a role including global economic news government regulations adoption by major companies overall investor sentiment and technological developments
5 What does market sentiment mean
Its the overall attitude or feeling of investors toward the market If sentiment is bullish people are optimistic and prices tend to rise If its bearish people are pessimistic and prices may fall
Intermediate Advanced Questions
6 If whale selling isnt a collapse signal what is it usually a sign of
It could be a sign of many things a whale taking profits after a price increase rebalancing their investment portfolio needing cash for other obligations or simply diversifying their assets Its not always a vote of no confidence in Bitcoin
7 How can analysts tell the difference between normal whale activity and a dangerous selloff
They look at the context They analyze why the whale might be selling the overall trading volume whether other whales are also selling and if the selling is being absorbed by strong buyer demand or if its causing panic
8 What does absorption of selling pressure mean
It means that there are enough buyers in the market willing to purchase all the Bitcoin that the whale is selling When this happens the price dip is