Bitcoin Whales Scoop Up 26,430 BTC As Price Dips Below $88,000

Bitcoin (BTC) kicked off the week on a bearish note, extending Monday’s sharp decline into Tuesday. 

After briefly stabilizing above $91,000, renewed selling pressure dragged BTC to fresh yearly lows. By mid-Tuesday, the price had plummeted to $87,081, with daily liquidations surpassing $870 million, according to Coinglass data.

The broader crypto market also took a hit, with total market capitalization dropping 8.9% to $3.01 trillion over the same period.

Despite the downturn, Bitcoin whales seized the opportunity to accumulate more BTC. Analysts from IntoTheBlock revealed that large holders acquired approximately $2.35 billion worth of Bitcoin within hours of the drop.

“Whales are buying. 26,430 BTC just flowed into whale accumulation addresses, often linked to OTC deals and long-term custody,” the analysts tweeted.

Bitcoin’s latest dip coincides with multiple factors contributing to selling pressure. Crypto analyst Nic highlighted that ETF outflows have been significant, with cumulative withdrawals reaching $649 million so far this week. He suggested that a slowdown in institutional “cash and carry” trades may also be adding to the pressure.

Macroeconomic uncertainties are further weighing on the market. Nic pointed to postponed tariffs against Mexico and Canada as a possible trigger for recent sell-offs. Additionally, Bitcoin’s break below its 100-day moving average, a critical historical support level, raises concerns. Based on on-chain data, he suggested that BTC could find support for around $71,600, aligning with the lower standard deviation of the short-term holder (STH) cost basis.

Former BitMEX CEO Arthur Hayes also shared his outlook, attributing the drop to ETF sales and hinting at a further downside for Bitcoin.

“Bitcoin goblin town incoming: Lots of $IBIT holders are hedge funds that went long ETF short CME futures to earn a yield greater than where they fund, short-term US treasuries,” Hayes tweeted. “If that basis drops as $BTC falls, these funds will sell $IBIT and buy back CME futures. These funds are in profit, and given basis is close to UST yields, they will unwind during US hours and realize their profit. $70,000 I see you”.

However, other analysts remain cautiously optimistic. On Monday, Darkfost from CryptoQuant noted that the 30-day retail demand indicator has returned to the neutral zone at 0%, a shift that preceded price rebounds.

“This marks a significant shift from the previous highly negative value of approximately -21%, a level not seen since 2021. Notably, past instances of recovering retail demand have often coincided with upward price movements in the short-term (several week or month).” He wrote.

Elsewhere, analyst Rekt Capital stressed the importance of Bitcoin reclaiming the $96,700 level by the end of February. According to him, a monthly close above this level would confirm a breakout from the bullish flag formation, potentially setting the stage for a renewed uptrend.

At press time, BTC was trading at $87,098, reflecting a 7.60% drop in the past 24 hours.