Bitcoin Whale Selloff: 81k BTC Dumped as ETF Outflows and Exchange Inflows Signal Weakness

The scale of the recent selling is stark. Over the past eight days, whale and shark wallets have dumped roughly 81,068 BTC. This massive handoff is a primary driver of current price weakness, directly thinning the liquidity held by major market participants.

The resulting holding percentage of 68.04% of the total Bitcoin supply is a nine-month low. This level of distribution by large holders signals a structural shift in ownership, moving coins from institutional-scale wallets into smaller, more fragmented hands.

Historically, this pattern-large holders distributing while retail accumulates-has often marked the early stages of bear market cycles. Until retail shows clearer signs of capitulation, larger players are more likely to remain comfortable selling, suggesting the path ahead may involve longer periods of consolidation or further downside.

ETF Outflows Thin the Bid: A $6B Drain

The whale selloff is being amplified by a persistent drain from a key institutional support. Over the past four months, spot Bitcoin ETFs have seen net outflows of more than $6 billion. This steady withdrawal removes a critical price floor, as ETFs had previously acted as a reliable, price-insensitive buyer during dips.

That support is now intermittent. When ETFs are net buyers, they provide a cushion against volatility. Now, with outflows ongoing, the market lacks that automatic bid. This structural thinning of liquidity makes the price more vulnerable to forced selling during any selling pressure.

The result is a more fragile market. With fewer institutional buyers standing ready, even discretionary selling can trigger a cascade. As the price fell, this lack of a steady bid likely contributed to the rapid liquidation of leveraged positions, turning a selloff into a more violent unwind.

Exchange Inflows and Price Impact

The whale selloff is hitting the market directly. The roughly 81,068 BTC dumped by large holders over eight days is now flowing onto exchanges, where it can be sold. This movement is a classic setup for price pressure, as supply floods the order books just as demand weakens from ETF outflows.

The result has been a sharp slide. Bitcoin's price fell to approximately $60,000 in a 24-hour period, mirroring the intensity of the 2022 FTX collapse. This drop wasn't just a simple sell-off; it triggered a cascade of forced liquidations. More than $1.2 billion in leveraged positions were wiped out as the price broke key levels.

This liquidation event is the mechanical engine of the selloff. As the price fell, exchanges automatically closed leveraged bets, adding more selling pressure to the market. This created a feedback loop: selling begets more selling, amplifying the initial whale supply dump. The combination of on-chain whale supply hitting exchanges and a thin ETF bid left the market vulnerable to this kind of violent unwind.