Bitcoin experienced a sharp decline after a prominent long-term holder initiated significant transfers to cryptocurrency exchanges. The movement of over 16,000 BTC—including 9,000 BTC to Galaxy Digital and 7,843 BTC to other trading platforms—triggered widespread market sell-offs.
The transfers rapidly pushed Bitcoin below the critical $117,000 support level, with prices reaching an intraday low of $116,218. This abrupt downward movement caused cascading liquidations totaling over $406 million in leveraged long positions across derivatives markets.
Market analysts highlight that such substantial exchange deposits typically signal impending selling pressure, often preceding further price corrections. The scale of this liquidation event underscores heightened profit-taking behavior among traders amid volatile conditions.
The incident demonstrates how large-scale holder activity can materially impact short-term market dynamics. Industry participants increasingly monitor whale transactions as key indicators for anticipating volatility shifts and assessing overall trader sentiment in cryptocurrency markets.