Whale with 0xfb5 Address Prefix Continuously Reduces BTC Long Position, Realizing Profit of Over $360,000

A whale with a 0xfb5 address prefix has been actively trimming its long position in Bitcoin over recent days. This activity, tracked by on-chain analysts, has led to a profit of more than $360,000 as BTC prices have shown signs of consolidation. The whale's actions suggest growing caution in the market, particularly as broader on-chain indicators highlight selling pressure.

Grayscale Investments is moving forward with plans to launch options trading on its CoinDesk Crypto 5 ETF (GDLC). The proposal was filed with the U.S. SEC by NYSE American, seeking approval to list physically settled, American-style options on the ETF. This development aims to increase the product's utility for hedging and speculation. The ETF currently holds a diversified basket of digital assets, including Bitcoin, Ethereum, XRP, Solana, and Cardano.

Bitcoin prices remain near $90,000 after recent volatility. The first-born crypto asset has failed to break above the 94.5k level, remaining in a consolidation range. Analysts note that the 50-week moving average and key support levels are now critical for near-term direction.

Ethereum and XRP have also shown weakness, with ETH nearing $3,000 and XRP hitting a 24-hour low of $2.07.

Why Did This Happen?

The whale with the 0xfb5 address has taken advantage of recent price movements to realize gains. On-chain data indicates that this whale has been continuously offloading BTC holdings, with the profit realized being among the largest in recent on-chain activity. Such actions typically signal that large holders expect a near-term correction or are reallocating capital.

Whale behavior has historically acted as an early signal for market shifts. Large investors often move positions to exchanges or hedge through derivatives when they perceive increased risk. The recent uptick in exchange deposits and ETF outflows further supports a bearish outlook among institutional participants.

How Did Markets Respond?

The broader market has responded cautiously. Bitcoin ETFs have recorded $681 million in weekly outflows, signaling ongoing institutional caution. This trend reflects a larger pattern of outflows seen in the past several months, with spot ETFs failing to attract significant inflows despite BTC's recent rebound.

Institutional selling has coincided with a decline in on-chain whale holdings. Wallets holding between 1,000 and 10,000 BTC have seen a year-over-year decline in balances, the fastest drop since 2023. This behavior suggests that major holders are not aggressively accumulating and are instead preparing for potential volatility.

What Are Analysts Watching Next?

Analysts are closely watching the upcoming U.S. CPI data as a key macroeconomic factor. Inflation expectations will influence the Federal Reserve's rate decisions and, by extension, asset valuations. A hotter-than-expected CPI could push Treasury yields and the dollar higher, further pressuring Bitcoin and other risk assets.

Technical indicators are also in focus. Bitcoin's ability to hold above $87,200 is seen as critical for near-term stability. A breakdown below this level could open the door to a deeper correction, potentially pushing prices toward $69,230.

Grayscale's proposed options trading on the CoinDesk Crypto 5 ETF could also play a role in market dynamics. If approved, it will be one of the first multi-asset crypto ETFs in the U.S. to offer such flexibility, potentially increasing liquidity and competition for order flow.

The market is also monitoring the performance of other crypto assets in the ETF. Solana and Cardano remain smaller components of the fund but are showing increased volatility as the broader market consolidates. Analysts suggest that investors are likely to use options to hedge against further declines in these assets.