Bitcoin Price Tumbles Below $65,000 as Whale Selling Grows

Bitcoin's price has taken a significant hit, dropping below $65,000 as trading began this week. According to data from Glassnode and CryptoQuant, recent buyers have been locking in heavy losses. In fact, the smoothed 7-day measure of short-term holder profits and losses fell to -$1.24 billion per day on February 6, indicating that newer investors were collectively experiencing over $1 billion in losses each day.

The intensity of this selling has since cooled, but the broader market structure remains under pressure. Glassnode's data shows that participants are currently in a base formation phase, which is typically characterized by loss-realization dynamics rather than strong uptrends. This suggests that Bitcoin may be building a bottom, but it has not yet regained its strength.

CryptoQuant's exchange metrics paint a similar picture of shifting market dynamics. The amount of bitcoin being sent to exchanges surged during the early February drop toward $60,000, but this figure has since fallen. However, the average size of each bitcoin deposit has increased, indicating that larger players are driving current exchange activity.

The data also shows that altcoins are facing broader distribution, and liquidity buffers are thinning. Net USDT inflows to exchanges have compressed sharply from a one-year high of $616 million in November to just $27 million, suggesting reduced marginal buying power.