Whales sold 17,500 BTC amid falling crypto market

On Thursday, October 16, the price of bitcoin BTC $106,426.00 Mezo Wrapped BTC -6.02% Market capitalization $36.33 million VOL. 24 hours $4.1 billion dropped to $ 110,000, losing about 12% of its recent all-time high. Analysts attribute the fall of the flagship crypto market to active selling by large investors, trade tensions between the US and China, and increased demand for put options, The Block reports. At some points, the virtual coin’s quotes dropped to $ 109,800, after which they partially recovered to $ 111,600.

The correction took place against the backdrop of a record liquidation of positions worth more than $ 19 billion the day before. According to Bitwise Chief Investment Officer Matt Hogan, this is a «structural reset,» not a market crash. BRN Head of Research Timothy Misir noted that large holders — the so-called whales — have sold about 17,500 BTC, but without signs of panic. At the same time, they have remained net buyers since the beginning of the year, accumulating more than 318,000 BTC, which indicates asset rotation rather than market exit.

On the options market, the volume of transactions with put contracts exceeded $ 1.15 billion, or 28% of the total trading volume. Most open call options are concentrated in the range of $ 115,000−130,000. The total capitalization of the crypto market fell to $ 3.8 trillion, and the fear and greed index dropped to 28 points, indicating increased investor caution.

Over the past day, liquidations of long positions exceeded $ 528 million. Despite the short-term weakness, some analysts see the situation as a sign of market resilience. 21Shares strategist Matt Mena noted that bitcoin continues to hold key levels due to structural demand, supported by $ 6 billion in ETF inflows over the past month.

Mena believes that the situation may stabilize after leverage is reduced, and if institutional demand remains, the price of bitcoin has the potential to recover to $ 150,000 by the end of the year. In the short term, he warns that breaking through the $ 110,000 level could open the way to $ 104,000−108,000, while the bullish trend will resume only after it consolidates above $ 115,000.