Bitcoin Whale Closes $350M Position Amid BTC Slide, Ethereum Staking Queue Rises

A major Bitcoin whale closed a $350.4 million long position as BTC prices slid toward $90,000. The whale wallet 0xFB78, which had accumulated 3,846 BTC, exited all positions, locking in losses exceeding $3.5 million during a sharp price decline. The trader had previously added $20 million in USDC to Hyperliquid to expand the position.

The exit occurred amid a broader market sell-off. Global cryptocurrency market capitalization dropped from $3.27 trillion to nearly $3.2 trillion within 24 hours. Bitcoin fell 2.8% to around $90,077, while Ethereum dropped nearly 3.7% below $3,200.

Institutional flows also turned negative. Spot Bitcoin ETFs recorded $730 million in outflows over two days. Ethereum and Solana ETFs also saw outflows, reversing previous inflow trends. This shift is reflected in the Crypto Fear and Greed Index, which dropped six points in 24 hours.

Why Did This Happen?

The whale’s decision followed repeated failures by BTC to break above the $94,500 resistance level. This resistance had previously capped gains in December and January. Market skepticism about the sustainability of the rally grew as the asset struggled to maintain higher levels.

Large U.S.-based miner Riot Platforms also contributed to the downward pressure. The company sold over 1,800 BTC, valued at roughly $161.6 million, citing operational needs. Such sales can exacerbate volatility during periods of low liquidity and uncertainty.

How Markets Responded

Ethereum’s staking dynamics shifted sharply as validator exits declined and fresh capital flowed into long-term lockups. The validator exit queue has now dropped to zero ETH, easing near-term selling pressure. At the same time, the entry queue for staking has grown to 1.3 million ETH, the highest level since mid-November.

This trend indicates growing confidence among large ether holders in long-term yield conditions. BitMine, the world’s largest Ethereum treasury firm, added 82,560 ETH to the staking queue in early January. The firm now has over 659,219 ETH staked, valued at approximately $2.1 billion.

The staking shift is also reflected in Ethereum’s broader fundamentals. Exchange balances for ETH remain at multi-year lows, reducing potential selling pressure. Meanwhile, Ethereum Gas fees have hit their lowest levels since the mainnet launch, and stablecoin transfer volume hit a record $8 trillion in Q4 2025.

What Analysts Are Watching

The Coinbase Bitcoin Premium Index has been negative for seven consecutive days, currently at -0.1184%. Over the past 30 days, the index has been negative on 29 days. This is a key indicator of U.S. capital outflows, institutional sentiment, and market risk appetite.

Analysts are also tracking the Ethereum staking queue dynamics. An empty exit queue and rising entry queue may signal a shift in investor sentiment. However, the impact on short-term prices is considered limited, as much of the staked ETH likely accumulated earlier and is now being reallocated.

The broader market remains under pressure. Bitcoin’s inability to break key resistance levels has led to skepticism about the durability of recent gains. Institutional selling and miner activity are adding to the downward pressure, while staking trends suggest a more cautious, long-term approach from some major players.