Bitcoin News Today: Old Whales' $3.9B Bitcoin Move Triggers $620M Liquidations, 4% Drop

Bitcoin's failed attempt to break above $126,000 in late September 2025 triggered a cascade of market events, including a $620 million liquidation of leveraged positions and a 4% price correction. The downturn followed a massive $3.93 billion Bitcoin transfer from dormant wallets, identified as the largest of its kind in 2025, which sent shockwaves through the crypto market. This movement, attributed to "old whales"-early Bitcoin holders-sparked immediate selling pressure, causing Bitcoin's price to retreat to approximately $120,000 and triggering a broader market deleveraging that affected altcoins as well.

The liquidation data revealed a stark imbalance in risk exposure. According to Coinglass, 74% of the $620 million in liquidations were long positions, indicating that traders who had bet on continued price gains were caught off guard by the sudden reversal. The collapse was exacerbated by overleveraged positions concentrated in Bitcoin and Ethereum, which accounted for nearly 60% of total liquidations. Exchanges like Binance, OKX, and Bybit saw significant wipeouts, reflecting the heightened leverage in the market following a recent bullish phase.

Technically, Bitcoin's retreat from its all-time high (ATH) was marked by a rejection at $125,000, aligning with the upper boundary of a multi-month ascending channel. The price consolidated around $121,000, testing critical support levels. Analysts noted that a sustained break below $120,500 could extend losses toward $112,000–$110,000, where historical buying interest has emerged. Meanwhile, Ethereum's resilience, bolstered by institutional accumulation, contrasted with its 4.5% single-day drop, underscoring divergent market dynamics.

The broader crypto ecosystem experienced a synchronized selloff, with altcoins like Solana, XRP, and AVAX falling 3–5%. Funding rates on perpetual markets normalized after spiking during the volatility, signaling traders' efforts to de-risk. Bitcoin dominance slightly declined to 53.4%, while stablecoin supply expanded by $5.48 billion, reflecting liquidity migration to Ethereum-based protocols.

Amid the turmoil, Dogecoin founder Elon Musk quipped on social media, noting the market's "healthy reset" and the necessity of flushing out excessive leverage. His comments highlighted the cyclical nature of crypto volatility, with institutional players continuing to accumulate Bitcoin and Ethereum despite the pullback.

Looking ahead, the market faces a critical juncture. Bitcoin's ability to defend the $120,000 support level will determine whether this correction becomes a temporary shakeout or a precursor to a deeper downturn. Analysts suggest that further whale movements or negative macroeconomic catalysts could prolong the selloff, while a rebound in buying pressure might revalidate the $125,000 resistance as a launchpad for a new bull phase.

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[1] BTC Liquidation Analysis & Heat Map | BitcoinLeverage.com (https://bitcoinleverage.com/token/BTC/liquidations)

[2] Whale Awakening: $3.9 Billion Bitcoin Shift Triggers $620 Million Liquidations (https://markets.financialcontent.com/stocks/article/breakingcrypto-2025-10-7-whale-awakening-39-billion-bitcoin-shift-triggers-620-million-liquidations-shaking-crypto-markets)

[3] Crypto Liquidations Top $600M As BTC Retreats From ATH (https://www.cryptotimes.io/2025/10/07/crypto-liquidations-top-600m-as-btc-retreats-from-ath/)

[7] Dogecoin (DOGE) Market Update – October 7, 2025 (https://insidebitcoins.com/sponsored/dogecoin-doge-market-update-october-7-2025-can-meme-power-turn-into-market-gains)