The bitcoin price experienced a decline of over 5% within a 24-hour period, sinking below $65,000. This drop was attributed to large holders transferring coins to exchanges and recent buyers liquidating their positions at a loss, which intensified the strain on an already delicate market. The majority of the price decline transpired in a mere two-hour window on Sunday evening. This signifies Bitcoin’s unprecedented run of six consecutive negative weekly closes, maintaining six straight closes below its 100-week moving average, and recording three consecutive closes under its 2021 high. The world’s largest cryptocurrency was trading around $64,500 at the time of this report, reflecting a decline of approximately $3,500 for the day. The drop came after a weekend sell-off from the $67,000 range, disrupting a previously stable consolidation and plunging further into thin liquidity.
According to data, trading activity surged during the decline, indicating a robust distribution phase rather than a mere quiet drift. In the latest analysis, exchange metrics indicate that whales are significantly influencing inflows. It is reported that significant bitcoin holders are currently responsible for the majority of exchange deposits, as the exchange whale ratio has surged to 0.64, marking the highest level since 2015. This indicates that whales are at the forefront of selling activity. The average bitcoin deposit size has surged to 1.58 BTC, marking the highest level since June 2022, indicating that larger players are increasingly transferring coins onto exchanges.
Despite total inflows dropping approximately 60% from the early February surge to around 23,000 BTC on a seven-day average, exchange flows continue to be high, which keeps the market vulnerable to additional volatility. Before the recent bitcoin price dump, the price action had been relatively subdued over the past week. A bounce from a bitcoin price of $60,000 was unable to breach the resistance at $71,800, leading to a decline towards support around $65,650, ultimately closing the week near $67,000. Bears continue to dominate the market as buyers have demonstrated minimal follow-through action.
However, several major institutions are still actively investing in bitcoin price exposure. Abu Dhabi’s Mubadala Investment Company has ramped up its investment in BlackRock’s iShares Bitcoin Trust, now holding 12.7 million shares valued at approximately $630 million as of Dec. 31, marking a 46% increase from the previous quarter. Al Warda Investments has increased its IBIT holdings to 8.22 million shares, further advancing its strategy to gain exposure to regulated bitcoin ETFs. Together, the two Abu Dhabi funds held over 20 million IBIT shares, with a valuation exceeding $1.1 billion at the close of 2025. Strategy acquired an additional 2,486 BTC for $168.4 million last week, increasing its total holdings to 717,131 BTC accumulated.