Bitcoin Price Slumps Below $65,000 Amid Increased Whale Selling Activity

The cryptocurrency market is experiencing another period of volatility as Bitcoin's price continues to slide. According to data from Glassnode and CryptoQuant, the worst of the panic may have passed, but the broader structure remains under pressure.

Recent buyers are still locking in losses, with a smoothed 7-day measure of short-term holder profits and losses falling to -$1.24 billion per day earlier this month. While this figure has since improved to around -$0.48 billion per day, it suggests that panic selling has not yet fully stopped.

Exchange flow data from CryptoQuant paints a similar picture, with the amount of Bitcoin being sent to exchanges surging during the early February drop towards $60,000 and since falling to roughly 23,000 $BTC on a 7-day smoothed basis. However, this decline in selling activity has been replaced by an increase in large holders, or 'whales', driving supply onto exchanges.

The average size of each Bitcoin deposit has also risen to levels last seen in mid-2022, reinforcing the idea that bigger players are driving current exchange activity. This trend is concerning, as elevated altcoin deposit activity and thinning liquidity buffers suggest higher volatility and weaker risk appetite.