Lightning Backhand Whale Takes Profit on $7.6 Million Long Position in BTC, ETH Long Liquidated

Bitcoin and Ethereum prices fell sharply in the early days of January 2026, with Bitcoin trading near $90,000 and Ethereum slipping toward $3,050. The decline came amid rising concerns about ETF outflows and whale selling pressure.

Grayscale Investments filed with the U.S. Securities and Exchange Commission (SEC) to enable options trading on its CoinDesk Crypto 5 ETF (GDLC), a multi-asset fund that includes Bitcoin, Ethereum, XRP, Solana, and Cardano according to reports. The proposal would allow investors to trade options on GDLC, which is currently approved as a spot ETF under the SEC’s generic listing standards.

BlackRock, the world’s largest asset manager, moved $294 million in Bitcoin and Ethereum to Coinbase on January 8, 2026, ahead of a $2.2 billion options expiry event on Deribit. This move followed significant outflows from the firm’s Bitcoin and Ethereum ETFs, with daily net outflows reaching $398.95 million for Bitcoin and $159.17 million for Ethereum.

Why Did This Happen?

Whale activity and ETF outflows have been key drivers of the recent sell-off. On-chain data shows that large Bitcoin holders reduced their holdings, with wallets holding between 1,000 and 10,000 BTC down by about 220,000 BTC in the past year. The decline marks the fastest drop since 2023 and suggests a lack of buying interest during price rebounds.

The exchange whale ratio for Bitcoin rose to 0.504, a level historically associated with higher selling activity. This rise indicates that large investors are depositing Bitcoin on exchanges at a 10-month high, potentially preparing to offload their holdings. Much of this activity occurred on Binance, where Bitcoin inflows have been rising steadily.

Grayscale’s attempt to enable options trading for its multi-asset ETF aims to address growing demand for risk management tools. The move could increase competition for order flow and enhance liquidity for crypto ETFs.

How Did Markets React?

Ethereum has been hit particularly hard, with its price down 17% over the past three months and 5.4% year-to-date. Smart money traders have sold $7.13 million in spot Ethereum during the past week, while whales accumulated $11.2 million in spot ETH.

Standard Chartered, a major international bank, lowered its Ethereum price forecast for the end of 2026 to $7,500 from $12,000, citing broader weakness across digital assets. The bank still expects Ethereum to surpass $40,000 by 2030.

The broader crypto market remains on alert for the U.S. December 2025 jobs report, which could influence Federal Reserve policy and, by extension, crypto prices. A weaker-than-expected report and rising unemployment could support further rate cuts, potentially boosting risk assets like crypto.

What Are Analysts Watching Next?

Analysts are closely tracking institutional buying behavior, exchange inflows, and ETF flows as key indicators of market sentiment. Ted Pillows, a crypto analyst, expects Bitcoin to rebound to $98,000–$100,000 before any major downtrend. However, Bitcoin must hold above $87,200 to avoid a deeper correction.

Grayscale’s options trading proposal could mark a milestone in the integration of crypto ETFs into mainstream financial markets. If approved, it would be one of the first multi-asset crypto ETFs in the U.S. to offer options, potentially attracting more institutional investors.

BlackRock’s movements of Bitcoin and Ethereum to Coinbase suggest continued uncertainty about the crypto market’s direction. The firm’s ETFs have seen net outflows for three consecutive days, raising questions about investor confidence.

Whale activity remains a key focus for market observers. The recent accumulation of Ethereum by whales, coupled with large selling from institutional investors, highlights the mixed signals in the market.

The upcoming jobs report and any developments related to U.S. tariffs could also influence investor sentiment and price action. A favorable outcome could ease concerns about inflation and support a broader risk-on environment.

In summary, the crypto market is navigating a period of uncertainty, with ETF outflows, whale behavior, and institutional positioning shaping near-term price action. Grayscale’s proposed options trading and BlackRock’s moves highlight the evolving dynamics in crypto markets as they continue to integrate with traditional financial systems.