Bitcoin recently slipped below the key psychological and technical threshold of $100,000, retracing from recent highs and signaling significant market stress. On November 4, 2025, Bitcoin dipped below $100K for the first time since June, after having been above $126K just a month prior. At the same time, there have been large sell-offs of Bitcoin by “whales” (entities holding very large amounts of BTC). Reports estimate about $45 billion of Bitcoin sold by long-term holders over the past month. The broader crypto market also saw massive liquidations amounting to over $1.1 billion–$1.3 billion in a short span, largely driven by Bitcoin’s drop.
Why It Matters
Psychologically and Technically Important Level
The $100,000 mark is not just a round number—it serves as a key support and psychological level for traders and investors. Breaking it sends a clear signal of weakened bullish conviction. When such a level fails, especially after a recent all-time high, it raises questions about the sustainability of the uptrend.
Whales and Market Leadership
Large holders matter because their actions can shift supply and demand dynamics. If many whales sell, it increases supply on the market, absorbs or chases out buyers, and puts downward pressure on price. The reports of tens of billions in selling suggest that some of these large holders may be unloading or shifting their positions, raising caution for the broader market.
Leverage and Liquidation Risk
When price drops rapidly, leveraged traders (especially those betting on price increases) get forced out. This can create cascades: forced sells push price down, triggering more forced sells. The large figure of over $1 billion in liquidations illustrates how much risk was built into the market.
Macro & Institutional Context
Beyond crypto-specific factors, broader macro forces are at play:
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Risk-off sentiment in global markets
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Uncertainty around interest rates, regulation, inflation
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Shift in investor focus from speculative bets toward institutional flows
Bitcoin’s decline is likely not just about crypto but also how it fits into the larger risk asset landscape.
What the Whale Activity Looks Like
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Mega-whales (holders of 1,000–10,000 BTC) started distributing holdings earlier this year.
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Blockchain analytics show large volumes of Bitcoin moving from long-term holder wallets into exchange addresses, often interpreted as potential sale preparation.
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Meanwhile, retail traders appear very bullish: one dataset showed about 72% of trader accounts in long positions despite the price dropping. That mismatch (whales selling vs retail buying) can create tension in the market.
Potential Causes of the Drop
Several factors likely converged:
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Profit-taking by whales after recent highs
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Weakened institutional demand
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Technical breakdown as support levels failed, triggering stop-losses and liquidations
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Macro headwinds including regulatory risk and global risk-off sentiment
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Sentiment shift: the drop below $100K may trigger fear replacing greed
What It Could Mean for Bitcoin and Crypto
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If Bitcoin fails to regain $100K support soon, there’s risk it could test lower support zones around $95K or $90K.
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Some argue forced selling by whales may be healthy, cleansing the market of excess risk and setting up a stronger base for the next leg up.
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Institutional flows remain a wildcard: if large funds begin accumulating, they could absorb supply and push price upward despite this pullback.
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For retail traders: seeing long positions alongside whale selling suggests caution. The market might be entering a consolidation or correction phase rather than an immediate resumption of the uptrend.
What to Watch Going Forward
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Does Bitcoin reclaim and sustainably stay above $100K?
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Are whale wallets continuing to distribute or shifting to accumulate?
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How large are institutional inflows and outflows?
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How many long positions remain open vs short positions?
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Macro developments such as Fed policy, regulation, and broader market performance.
The drop of Bitcoin below $100K paired with massive whale selling is a significant moment. It suggests that the tailwinds of recent months may be weaker, and the risk of a deeper correction has increased.
However, it’s not necessarily a death knell for the asset. Many structural themes—scarcity, institutional adoption, global reserve asset arguments—remain intact. What changes is timing and psychology: a period of consolidation, risk resetting, and watching for reliable signs of re-accumulation rather than purely momentum-driven speculation.
For now, caution is warranted. Price levels matter, but so does what large players do. Their choices can move the market as much as any headline.
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