Bitcoin News Today: Bitcoin Falls 4.5% From Record High as Whale Ratio Signals Volatility Risks

Bitcoin briefly surged past $124,000 on Wednesday before retreating below the $120,000 level, marking a sharp correction following a new all-time high. As of press time, the asset is trading at $118,336, down 1.9% on a weekly basis and 4.5% from its peak [1]. The move has raised concerns among on-chain analysts, with key metrics indicating increased short-term volatility risk.

The Exchange Whale Ratio, a widely monitored indicator tracking the proportion of BTC inflows to exchanges originating from large holders, has surpassed the 0.50 threshold [1]. This level is historically associated with heightened price swings, often triggered by whale-driven sell activity. Despite the elevated ratio, aggregated data across all exchanges shows negative net flows, meaning more BTC is leaving exchanges than entering—suggesting continued accumulation rather than a broad-based selling wave [1].

Binance has, however, seen a notable divergence in activity. The exchange recorded its largest single-day positive net flow in the past 12 months, with a substantial influx of BTC, according to CryptoOnchain [1]. This anomaly has historically preceded sharp sell-offs or leveraged short squeezes, depending on whether inflows are directed toward spot trading or derivatives. The platform’s BTC spot trading volume also spiked to $7 billion in a single day, as reported by Amr Taha of CryptoQuant [1], potentially signaling a shift in trader positioning or the influence of institutional players.

The Spent Output Age Bands metric on Binance has also crossed the 0.4 threshold, a level often linked to retail-driven sell-offs. Retail investors tend to offload holdings during bullish phases, providing liquidity that enables larger market participants to execute more significant trades [1]. This dynamic adds another layer of complexity to the current price action, as it reflects both retail caution and potential accumulation by institutional actors.

Meanwhile, inflows from large holders remain subdued compared to recent peaks. Whale inflows are currently at 1,170 BTC, significantly lower than the 14,610 BTC observed on July 19 during a prior price correction [1]. The reduced presence of whale selling implies lower immediate downside risk, although the market remains sensitive to developments in derivatives positioning and macroeconomic conditions.

Bitcoin’s recent on-chain behavior highlights the interplay between whale activity, retail participation, and exchange-specific flows. While the overall trend of net outflows supports a longer-term bullish narrative, the elevated whale ratio and concentrated inflows to Binance increase the likelihood of short-term price instability. Analysts are urging close monitoring of Binance’s order book, open interest, and funding rates to gauge potential price direction in the near term [1].

The market appears to be in a consolidation phase as it approaches critical psychological support levels. Bitcoin rebounded from a key support at $114,200 following heavy buying from whale clusters, before retreating toward $117,000 [6]. The NRPL (Net Realized Profit/Loss) metric has also reached levels not seen since early Q2 2025, indicating that both large investors and recent buyers are locking in gains amid cautious sentiment [8].

With Bitcoin hovering just below $120,000, the next few trading sessions will be crucial in determining whether the asset regains momentum or continues to experience consolidation. Investors are also keeping an eye on related financial instruments, such as the BlackRock Bitcoin ETF, which has surpassed $91.06 billion in assets under management [3], signaling growing institutional confidence.

While the current profit-taking phase does not necessarily indicate a bearish trend, it underscores the market’s need for a period of adjustment after rapid price gains. Whale behavior remains a key factor in the near term, with the $120,000 level likely to serve as a focal point for both buyers and sellers in the coming weeks [9].

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[1] NewsBTC – [https://www.newsbtc.com/bitcoin-news/bitcoin-pulls-back-below-120k-after-new-ath-as-whale-ratio-hits-risk-levels/](https://www.newsbtc.com/bitcoin-news/bitcoin-pulls-back-below-120k-after-new-ath-as-whale-ratio-hits-risk-levels/)

[2] AInvest – [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-holds-120k-miner-sell-1b-liquidations-2508/](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-holds-120k-miner-sell-1b-liquidations-2508/)

[3] Mitrade – [https://www.mitrade.com/insights/crypto-analysis/bitcoin/cryptopolitan-BTCUSD-202508151107](https://www.mitrade.com/insights/crypto-analysis/bitcoin/cryptopolitan-BTCUSD-202508151107)

[6] TradingView – [https://www.tradingview.com/symbols/BTCUSDT/ideas/page-6/](https://www.tradingview.com/symbols/BTCUSDT/ideas/page-6/)

[8] advfn.fr – [https://fr.advfn.com/bourses/COIN/QNTUSD/crypto-news/96436429/bitcoin-profit-taking-spikes-without-price-drop](https://fr.advfn.com/bourses/COIN/QNTUSD/crypto-news/96436429/bitcoin-profit-taking-spikes-without-price-drop)

[9] Final – [https://final-cryptotool.com/blog](https://final-cryptotool.com/blog)