Bitcoin suffered a sharp downturn this week, falling to $60,001 for the first time since October 2024. Whale and institutional selling triggered liquidations across exchanges, with over $2 billion in crypto positions wiped out. According to Santiment, wallets holding 10–10,000 BTC now control just 68.04% of total supply, a nine-month low. In the past eight days, these large holders offloaded 81,068 BTC.
Meanwhile, smaller “shrimp” wallets (holding less than 0.01 BTC) increased their share to 0.249%, a 20-month high. This reflects retail investors' continued appetite for buying dips amid heavy selling pressure, creating a clear divide between smart money and retail enthusiasm.
Leveraged Longs Wiped Out, $60K in Focus
Analyst Walter Bloombergan noted: “Bitcoin rebounded nearly 6% after briefly falling more than 50% from its October peak, touching near $60,000 before climbing back to around $65,700.” Ether and Solana mirrored the selloff before partial recovery. ETF outflows hit $434 million. Traders now watch whether Bitcoin can hold the $60K level; a breach could push prices further into the $50,000–$55,000 range.
‘Narrative Contagion’ Threatens Crypto-Holding Firms
Bloombergan highlighted that Digital Asset Treasury firms (DATs) face heightened risk. These companies, which fueled last year's rally, now risk triggering market contagion if they sell assets to fund operations. Recent sales by Ethzilla and FG Nexus underline the real danger. Vulnerable firms include Enlivex, Twenty One Capital, and Evernorth, while better-capitalized firms like The Smarter Web Company remain solvent. Hughes compared it to the “Hotel California trade”: easy to check in, but hard to exit without crashing the market.
The combination of retail buying and institutional selling historically fuels bear cycles. Until retail shows signs of capitulation, smart money will likely continue selling. Elevated volatility is expected to persist.