Crypto Crash: Bitcoin, Ethereum Whales Dump Assets Amid $2B Outflows

Cryptocurrency markets have been experiencing a significant downturn, with Bitcoin (BTC) and Ethereum (ETH) leading the way. In the past week, both assets have seen substantial outflows, totaling over $2 billion, which has contributed to a 3.8% decline in the overall market capitalization to $3.19 trillion. Despite this downward trend, some crypto users remain optimistic about a potential rebound following brief hourly trading fluctuations.

Data from Lookonchain indicates that large holders, or "whales," of both BTC and ETH have been selling their assets at a loss in an effort to minimize potential losses as the market correction intensifies. This selling pressure has pushed Bitcoin's price below the $99,500 mark, threatening its $90K support level from the beginning of the year. The increase in inflows to centralized exchanges suggests that more sales may be on the horizon, potentially leading to further corrections. This week has seen massive whale BTC sales, with many of these transactions occurring at a loss to avoid liquidations.

On-chain data reveals that retail holders have been selling their assets following a correction below $95,000, leaving institutional traders to buy the dip. However, significant sales have also been recorded from institutional holdings, highlighting the poor weekly performance of crypto products. As a result of these holdings, there has been a sharp drop in trader settlements, which has affected total volumes. At the time of writing, Bitcoin's price stands at $97,586, representing a 3% decline over the past seven days.

Ethereum's price has also been affected by the market downturn, plummeting to $2,620 at the time of writing. This marks a 14% decline since last week and a 3% drop today. Ethereum's decline comes amid low sentiment in the broader crypto and decentralized finance (DeFi) markets. As liquidations exceed $500 million, Ethereum's market cap is currently at $319 billion.

Lookonchain data shows that whales have been offloading their ETH holdings, with large transfers to Binance. In one instance, a single trader lost $1 million from three transactions in an attempt to adjust their positions. The downtrend in Bitcoin and Ethereum has had a ripple effect on altcoins and meme tokens, with many assets