The cryptocurrency market suffered a severe pullback this November 5th. Bitcoin (BTC) lost the key psychological support of $100,000. The crash was driven by a massive Bitcoin whale sell-off. Markus Thielen of 10x Research described the situation as an “exodus” that unbalanced the market.
BTC’s intraday drop reached 7.4%. This represents a 20% retracement from its recent peak. Analyses indicate this was not the usual leveraged liquidations. Instead, it involved direct sales in the spot market by “mega whales” (wallets holding 1,000–10,000 BTC). According to Thielen’s estimates, nearly 400,000 BTC hit the market over the last month. This figure, valued between $45 billion and $59 billion, heavily impacted institutional and retail investors alike.
Furthermore, the selling pressure was reinforced by other factors. Vetle Lunde, an analyst at K33, reported the activation of 319,000 BTC that had been dormant for six to twelve months. This strengthens the thesis of widespread profit-taking. Additionally, movements of $8 billion from dormant wallets were detected, adding pressure to the supply. However, the movement was not uniform. Data shows a significant capital rotation, where two entities sold $1.4 billion in BTC to acquire $1.73 billion in ETH.
Does this massive profit-taking signal the end of institutional confidence?
The massive Bitcoin whale sell-off has direct effects. This activity dramatically reduces liquidity at key support levels. Therefore, it aggravates volatility and can erode the confidence of retail investors. For institutions, these events create immediate valuation risks and treasury management challenges. In developing markets, the episode highlights the dependence on concentrated players. Rumors also emerged about XRP dumping and transfers of $161 million in Solana, fueling uncertainty.
The market is now assessing the capacity to absorb the offloaded supply. The immediate focus is on whether whales will continue to unload their positions. Despite the selling panic, speculative optimism persists. Analysts identified a bullish position of $23.7 million betting on BTC reaching $200,000 before the year ends. The market remains on edge, watching to see if the massive Bitcoin whale sell-off has concluded.
