Bitcoin News Today: Whales Drive Bitcoin Exodus, Fear Grips Crypto Market

Bitcoin’s historically weak September trend has resurfaced in 2024, with the price dropping to $109,400 on Monday, marking its lowest level in over six weeks. The decline follows a $11 billion sell-off by a whale that had been dormant for five years, with the bulk of the proceeds moving to Ether (ETH) spot and futures on decentralized exchange Hyperliquid. The move has intensified bearish sentiment in the market, with onchain data indicating that all Bitcoin wallet cohorts have shifted into distribution mode, led by mid-sized holders in the 10–100 BTC range. This synchronized selling across wallet sizes has raised concerns about the sustainability of current price levels.

Despite the sharp price decline, demand for Bitcoin futures has surged to an all-time high, with open interest climbing to 762,700 BTC on Monday—13% higher than two weeks prior. This increase highlights continued trader participation, even as the price has dropped 10% from its August 14 peak. However, the $85 billion in open interest does not necessarily reflect optimism, as long and short positions are inherently matched. Traders remain cautious, particularly in light of the recent $284 million in long liquidations triggered by a rapid price drop over two days.

The bearish sentiment is further reinforced by the Bitcoin options market, where put options currently trade at a 10% premium over call options, indicating heightened fear among investors. This level of bearishness is not uncommon following sharp corrections, but the speed and volume of the recent sell-off have raised questions about the role of long-term holders, or “whales,” in shifting capital to alternative assets. Analysts note that while such behavior is normal, it may signal a broader shift in risk appetite and asset allocation.

Historical patterns also suggest a continuation of weakness as September traditionally marks a period of decline for Bitcoin. Data shows that since 2017, Bitcoin has posted an average decline of 21.7% during the “ghost month,” which this year runs from August 23 to September 21. The current correction aligns with this historical trend, and if the price continues to fall below $105,000, analysts warn of a potential acceleration toward the $92,000–$89,000 range. The absence of dense cost support between $100,000 and $90,000 increases the likelihood of a sharp sell-off, particularly if recent buyers begin to capitulate under pressure.

The broader market context also shows signs of ETF fatigue and macroeconomic uncertainty. Net outflows from US-listed spot Bitcoin ETFs totaled $1.2 billion between August 15 and August 22, signaling a shift in investor sentiment. While leveraged traders continue to bet on a potential rebound toward $120,000, the likelihood of such a move depends heavily on the resumption of spot ETF inflows and renewed investor confidence. Until then, the market remains vulnerable to further corrections, particularly as global growth concerns persist and the US dollar continues to influence Bitcoin’s relative performance.

Source: [1] Bitcoin futures demand rises even as BTC sells off (https://cointelegraph.com/news/bitcoin-futures-demand-rises-even-as-btc-sells-off-what-gives) [2] Bitcoin holders distribute as $105K becomes BTC's last stronghold (https://cointelegraph.com/news/bitcoin-holders-distribute-as-dollar105k-becomes-btc-s-last-stronghold)