Bitcoin Slides to $60K Amid Whale Selling, Retail Buying Surges

• Big Bitcoin holders offload coins, while small wallets keep buying dips, showing retail confidence amid market turmoil.
• Over $2B in crypto positions liquidated; traders watch $60K support, a break could push prices to $50K–$55K.
• Crypto-hoarding firms risk “narrative contagion,” creating potential market swings if selling pressure continues.

Bitcoin faced a sharp downturn this week, falling to $60,001 for the first time since October 2024. The crash, driven by whale and institutional selling, triggered liquidations across exchanges. According to Santiment, wallets holding 10–10,000 BTC now control just 68.04% of the total Bitcoin supply, marking a nine-month low. In the past eight days alone, these large holders offloaded 81,068 BTC.

Meanwhile, smaller “shrimp” wallets, holding less than 0.01 BTC, increased their share to a 20-month high of 0.249%. This accumulation reflects retail investors’ continued appetite to buy dips, even amid heavy selling pressure. Consequently, the market now shows a clear divide between smart money and retail enthusiasm.

Besides large holders selling, leveraged positions added fuel to the decline. 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, experiencing sharp declines before partial recovery. Volatility surged, ETF outflows hit $434 million, and over $2 billion in crypto positions were liquidated. Hence, traders now focus on whether Bitcoin can maintain the $60,000 level, as a breach could push prices further into the mid-$50,000s.

Institutional Risks and Market Contagion

Additionally, crypto-hoarding firms, or DATs, face heightened risk. Bloombergan highlighted that companies fueling last year’s rally now risk triggering market contagion. With Bitcoin down nearly 50% from its October peak, DATs lacking revenue might sell assets to fund operations. This could spook investors, creating what Bloombergan calls “narrative contagion.”

Recent sales by firms like Ethzilla and FG Nexus underline the real risk. Falling DAT stock prices and ETF outflows could pressure Bitcoin toward $50K–$55K. Vulnerable firms include Enlivex, Twenty One Capital, and Evernorth.

Conversely, better-capitalized firms, such as The Smarter Web Company, remain solvent, having avoided risky debt structures. Hughes summarizes it as the “Hotel California trade”: easy to check in, but hard to exit without crashing the market.

Moreover, the combination of retail buying and institutional selling historically fuels bear cycles. Until retail shows signs of capitulation, smart money will likely continue selling confidently. Consequently, the market may experience further swings, with volatility remaining elevated.