The recent Bitcoin plunge to $82K coincides with a massive sell-off of 6,813 BTC by whales and sharks.
This week, Bitcoin experienced a steep decline after a brief recovery, falling from around $96,500 to $82,455 before regaining some ground. At press time, Bitcoin traded at $86,009, marking a partial recovery of over $4,000.
The decline coincided with President Donald Trump’s statement about imposing 25% tariffs on the European Union. Additionally, on-chain data revealed significant selling activity from large Bitcoin holders or “whales.”
Whale Activity and Market Impact
A chart from Santiment highlighted the correlation between Bitcoin’s price drop and large wallet holders selling off their holdings. Wallets containing 10 or more BTC collectively sold approximately 6,813 BTC over the past week.
Before this sell-off, these wallets had been accumulating Bitcoin, reaching a peak around mid-to-late January 2025 before beginning to decline. Historically, Bitcoin’s price movements have shown a strong link to accumulation and distribution patterns among whales and sharks.
Meanwhile, another dataset from IntoTheBlock provided insights into Bitcoin ownership distribution among mid-term holders and short-term traders. Over the past week, mid-term holders (Cruisers) declined by 1.60%.
Short-term traders (Traders) saw the most significant decrease, dropping by 3.72%. This shift in distribution suggests reduced short-term trading activity amid the latest market downturn.
Bitcoin Volatility Compared to Previous Cycles
It is important to note that despite the latest price correction, Bitcoin’s overall volatility remains lower than in previous bull runs. Historical data shows that during the 2011-2013 cycle, Bitcoin had an average drawdown of 19.19%, with a maximum decline of 49.45%.
The 2015-2017 cycle saw an average drawdown of 11.49%, with a maximum of 36.01%. The 2018-2021 cycle had an average drop of 20.41%, reaching a peak decline of 62.62%.
In contrast, the current cycle has demonstrated lower volatility with a maximum 26% drop, suggesting a more stabilized market. Market observers attribute this trend to Bitcoin’s growing institutional adoption and its evolving role as a financial asset.
BTC Performance Since Cycle Low
Bitcoin has increased 5.48 times since its most recent cycle low of $15,400 in January 2023. When comparing past cycles at a similar point, the 2011-2015 cycle saw a 284.28x rise, while the 2015-2018 cycle recorded a 7.26x increase. The 2018-2022 cycle saw a 16.86x rise.
While the current cycle’s performance appears less aggressive than previous ones, Bitcoin’s steady growth indicates a different market environment. Unlike earlier cycles, which experienced extreme volatility, Bitcoin now follows a more controlled pattern.
