Bitcoin Plummets 5% in 2 Hours, Falls Below $65,000
Bitcoin faced a significant decline of over 5% within 24 hours, dropping below $65,000 on Sunday evening. This abrupt downturn was driven by large holders moving their assets to exchanges and recent buyers liquidating at a loss. Consequently, the market experienced heightened pressure, aggravating an already fragile situation. Most of this decline occurred within a mere two-hour window.
Bitcoin’s Unprecedented Market Performance
This price drop signifies Bitcoin’s first-ever occurrence of six consecutive weekly losses, and it marks an equal number of closures beneath its 100-week moving average. Additionally, Bitcoin has closed below its 2021 high three times in a row. As of the latest data, Bitcoin was trading around $64,500, reflecting a roughly $3,500 decrease for the day.
Recent Market Activity
The weekend saw Bitcoin’s price decline from the $67,000 range, breaking a somewhat stable consolidation period. This movement has resulted in a surge of trading activity, indicating active distribution rather than passive selling. According to Bitcoin Magazine Pro data, this increase is noteworthy.
Exchange Metrics and Whales’ Influence
- CryptoQuant reports indicate that large holders, referred to as “whales,” are predominantly driving exchange inflows.
- The exchange whale ratio has risen to 0.64, its highest since 2015, suggesting that these whales are spearheading selling activities.
- The average deposit size per transaction has climbed to 1.58 BTC, the highest since June 2022.
Despite total inflows decreasing by about 60% from an early February spike, averaging around 23,000 BTC over seven days, exchange activity remains notably high. This scenario leaves the market vulnerable to further volatility.
Market Analysis and Institutional Investments
Leading up to this price dip, market activity had been relatively subdued. Bitcoin’s price had rallied from $60,000 but struggled to surpass the resistance level at $71,800, eventually settling near the support level of $65,650 before closing near $67,000 in the previous week.
Currently, bearish sentiment prevails as buyers have displayed limited follow-through. However, institutional investment trends show that some major entities continue to pursue Bitcoin exposure. Notably, Abu Dhabi’s Mubadala Investment Company has raised its stake in BlackRock’s iShares Bitcoin Trust (IBIT) to 12.7 million shares, now valued around $630 million, reflecting a 46% increase from the previous quarter.
- Al Warda Investments has also enhanced its IBIT holdings to 8.22 million shares.
- Together, these two Abu Dhabi firms possess over 20 million IBIT shares valued at upwards of $1.1 billion as of the end of 2025.
In addition, the firm Strategy purchased another 2,486 BTC for approximately $168.4 million last week, bringing its total holdings to 717,131 BTC. Executive Michael Saylor hinted on X about making another significant purchase soon, marking a 13-week streak of accumulation despite a reported $5.8 billion unrealized loss.
