Bitcoin Faces Major Selloff: $650 Million Liquidated
Bitcoin’s price action has been a rollercoaster ride recently, culminating in a sharp selloff on Sunday night that wiped out over $650 million in liquidations. This sudden drop erased much of last week’s gains and reignited concerns about crypto market stability. For those tracking the markets closely, the latest movements indicate this could be a critical turning point for Bitcoin and other major cryptocurrencies.
From Recovery to Freefall
After weeks of bearish sentiment, the second half of Thanksgiving week brought a ray of hope for crypto enthusiasts. On-chain data revealed that major Bitcoin holders, also known as ‘mega-whales,’ shifted from net selling to net accumulation for the first time in months. This group, holding more than 10,000 BTC each, drove most of last week’s 10% price surge. Smaller whales—those holding between 1,000 and 10,000 BTC—followed suit, flipping into net buyers as well. Even retail holders with less than 1 BTC showed the highest accumulation activity since July.
Exchange-Traded Funds (ETFs) also reflected this positive momentum, posting notable inflows. Bitcoin ETFs saw $70 million in net inflows, their first positive week since late October. Ethereum ETFs fared even better, gaining $312 million in the same period, marking their strongest week in nearly two months.
However, optimism quickly turned to anxiety as Bitcoin plunged from local highs of $92,000 down to $85,700 within hours on Sunday. This selloff led to widespread liquidations across the market and a 6-8% dip for most crypto majors, including Ethereum and other top tokens.
The Path Ahead: Bullish Hope or Bearish Reality?
For now, the outlook on Bitcoin remains uncertain. In the short term, much will depend on whether large-scale traders and institutional investors continue accumulating. If whale buying persists, prices could stabilize, setting a potential bottom for Bitcoin and the broader crypto market. On the other hand, if selling pressure remains high, prices could head toward the $70,000 range or lower—a scenario widely anticipated by market bears.
Last week’s brief recovery offered a glimpse of hope for crypto enthusiasts, but it’s clear that volatility isn’t going away anytime soon. For long-term investors, this could be an opportunity to strategize, while traders may need to navigate the choppy waters carefully for the foreseeable future.
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Stay tuned as we bring you the latest updates on Bitcoin and the broader cryptocurrency market.
