Whale Liquidation Cuts $190,000 as Bitcoin ETFs Hit $120 Billion in Assets

Bitcoin ETFs have surpassed $120 billion in net assets as institutional investors continue to treat Bitcoin as a long-term strategic allocation according to reports. The rise in demand has led to a steady accumulation of Bitcoin, with ETFs absorbing more than 100% of newly mined supply since their launch in January 2024. Analysts suggest this trend signals a shift in investor behavior, with older allocators preferring to hold rather than trade the asset.

In contrast, on-chain data reveals a significant decline in Bitcoin whale holdings, with large investors opting for cautious strategies amid ETF outflows. A recent report highlights that addresses holding 1,000 to 10,000 BTC have reduced their balances to about 220,000 BTC, the fastest decline since 2023. This reduction has sparked speculation that whales are preparing for further price corrections.

Bitcoin prices remained near $90,000 as of January 14, despite a mid-week dip that brought market sentiment back to a 'fear' level. The recent volatility has also been mirrored in Asian stock markets, where a decline in the Nikkei and Nifty 50 indices coincided with a 1.4% drop in BTC. However, technical indicators suggest that Bitcoin remains within a healthy consolidation range, with the 50-day moving average at $89.2K offering key support.

Why Did This Happen?

Bitcoin ETF outflows have played a role in the current price dynamics. Over the past week, spot Bitcoin ETFs recorded $681 million in net outflows, driven by caution among institutional investors. These outflows contrast with earlier months, when ETF inflows had reached multi-month highs. The decline in ETF buying pressure has raised questions about the sustainability of Bitcoin's recent price gains.

Whale activity has also contributed to the bearish sentiment. A whale liquidated a long position of 147.75 BTC, resulting in a $190,000 loss. This move reflects broader hesitation among large holders, who are not actively buying despite price dips. On-chain data from platforms like CryptoQuant shows that whale deposits on exchanges have increased, signaling potential selling activity.

How Did Markets Respond?

The immediate market reaction to these developments has been mixed. While Bitcoin ETFs continue to attract long-term capital, short-term holders have not yet regained profitability. The current short-term holder cost basis is at $99.1K, and a return to profitability is seen as a critical step before further bullish momentum can materialize. Without a sustained recovery above this threshold, analysts warn that panic selling could accelerate the bear market.

Bitcoin's price action has also been influenced by the broader macroeconomic environment. Despite a $1.25 billion Bitcoin purchase by Strategy Inc., which bought 13,627 BTC, the asset has failed to break out of its $80K to $94K range. This consolidation suggests that the market is still digesting recent movements and remains uncertain about the next direction.

What Are Analysts Watching Next?

Market observers are closely monitoring several key metrics to gauge the next phase of Bitcoin's trajectory. On-chain analytics indicate that long-term holders have remained relatively steady in their selling activity, which could limit near-term price volatility. However, analysts warn that a sudden shift in large holder behavior—whether toward accumulation or distribution—could trigger significant market moves.

Technical indicators also remain under scrutiny. Bitcoin has traded below its 50-week moving average for nine consecutive weeks, a pattern historically associated with sharp corrections. Holding above $87,200 is considered crucial for maintaining the current price range. A breakdown below this level could lead to further declines toward $69,230.

Institutional investors are also watching how ETFs perform in the coming weeks. The start of 2026 has already seen $209.87 million in net outflows, raising concerns about the resilience of institutional demand. If this trend continues, it could signal a broader shift in investor sentiment and impact Bitcoin's price trajectory.

Whale activity in altcoins has also drawn attention, with significant movements in assets like Ethereum and Avalanche. For instance, a whale deposited 2,015 ETH into HTX, while another withdrew 12,000 ETH from Binance according to on-chain data. These moves highlight the ongoing role of large players in shaping market dynamics, even as Bitcoin remains the dominant asset in the crypto space.

Overall, the market remains in a state of consolidation. While Bitcoin ETFs continue to attract long-term capital, short-term holders and exchange flows suggest caution. Analysts are watching for signs that the balance will tip in favor of either accumulation or selling pressure, which could define the next phase of Bitcoin's price action.