Panic Hits Crypto: OG Whales Dump $41B in Bitcoin — Is $70K Next?
Bitcoin's price has sharply declined below $100,000 for the first time since June, leading long-term holders to liquidate $41.6 billion in assets. Miners are struggling with record-low profitability due to high electricity costs, reduced transaction fees, and elevated network difficulty, prompting $172 million in BTC sales. Regulatory uncertainty and macroeconomic stress, including the longest government shutdown, have added to market pressures. Analysts warn of potential dips to $70,000-$75,000 if support levels around $100,000 fail. Despite this, contrarian investors like Andrew Tate are buying into the dip. The market remains volatile and uncertain.
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Bitcoin’s Sharp Decline and Long-Term Holders’ Liquidation
Long-term Bitcoin holders have liquidated $41.6 billion in assets following a sharp price decline that brought the cryptocurrency below $100,000 for the first time since June. This marks one of the most significant sell-offs by seasoned investors, historically considered the market’s ‘strong hands.’ Bitcoin’s price fell over 20% from its October record high of above $126,000. According to crypto analyst PeeCowYay, ancient Bitcoin wallets alone have sold over $1 billion, significantly contributing to the price dip.
Market Stress and Contrarian Activity
The rapid decline has resulted in severe market stress, with over $1.3 billion worth of positions liquidated in just 24 hours, showcasing the extent of market deleveraging. Amid this turbulence, contrarian investors have entered the market: Andrew Tate, for instance, purchased 50 BTC for $5 million, gaining attention within the crypto community. Pete Rizzo of BTC Treasuries highlighted this move, describing it as an attempt to 'buy the dip.' Nevertheless, broader investor sentiment remains cautious.
Mining Sector Faces Unprecedented Profitability Crisis
Bitcoin miners are grappling with their lowest profitability levels since April, following a dramatic price drop from $107,000 to $100,000. Elevated electricity costs now account for 40-60% of total mining expenses, based on Digiconomist’s estimates. This, coupled with higher network difficulty and reduced transaction fees, has significantly compressed profit margins. In response to the crisis, miners have collectively sold $172 million worth of BTC from their wallets, adding to the selling pressure in an already fragile market environment.
Regulatory and Political Uncertainty Weighs on the Market
The most extended government shutdown in history and a recently defeated filibuster have added a layer of macroeconomic and political uncertainty, further compounding selling pressure. A crypto analyst noted being 'wrong once in five years' regarding near-term resistance at $114,300, as Bitcoin continues its sharp reversal. As a result, market participants are navigating this turbulence without clear directional catalysts.
Focus on Key Technical Support Levels
Technical analysts are closely monitoring critical support zones, with the $100,000-$101,000 range identified as a crucial level. A breakdown below this area could pave the way for a deeper test near $94,000, while some forecasts suggest a potential retracement toward $85,000 if the selling pressure persists. More conservative scenarios predict Bitcoin falling to the $70,000-$75,000 range. Tyler Richey of Sevens Report and Peter Brandt have indicated probabilities and trends reflecting worst-case scenarios, with uncertainty about upcoming digital asset regulations further weighing on sentiment.