Bitcoin ‘Diamond Hands’? BTC Holds $97K as Whales Dump at 3AC Levels

Bitcoin is experiencing its largest selling pressure since the Three Arrows Capital (3AC) collapse in 2022. Whale investors have offloaded BTC at a rate nine times higher than the yearly average.

Despite this, Bitcoin remains resilient, maintaining a price near $100,000. Analysts suggest this could indicate seller exhaustion. Meanwhile, upcoming economic events, including U.S. inflation data and Federal Reserve Chair Jerome Powell’s testimony, could spark significant volatility in the crypto market.

Whale Selling Reaches Extreme Levels

According to Bitwise Europe’s head of research André Dragosch, Bitcoin saw its highest selling pressure in nearly two years. Large transactions on spot exchanges suggest that major holders are cashing out.

However, Bitcoin’s ability to stay above key levels despite this pressure hints at strong demand. Dragosch believes the market could be reaching a point where sellers have exhausted their selling capacity.

*** WATCH: We have just reached the highest amount of selling pressure on Bitcoin spot exchanges since the collapse of 3AC in June 2022.

Yet, the price is still close to 100k USD.

Seller exhaustion. ? pic.twitter.com/NDFaHYlfyk

— André Dragosch, PhD | Bitcoin & Macro ⚡ (@Andre_Dragosch) February 10, 2025

Strategy Buys More Bitcoin

While whales are offloading, MicroStrategy continues its aggressive accumulation strategy. Blockchain tracking platform Lookonchain reported that MicroStrategy purchased 7,633 BTC last week for $742 million at an average price of $97,255. This brings the company’s total Bitcoin holdings to 478,740 BTC, worth approximately $46.55 billion, with an average buying price of $65,033 per BTC.

MicroStrategy’s strategy reflects strong institutional confidence in Bitcoin’s long-term potential. Its continued accumulation suggests that some large investors still see Bitcoin as an attractive asset in spite of ongoing volatility.

Echoes of the 3AC Crypto Contagion

The last time Bitcoin witnessed such significant selling pressure was in June 2022, following the collapse of Three Arrows Capital. The Singapore-based hedge fund, which once managed over $10 billion in assets, suffered massive liquidations after exchanging around $500 million worth of Bitcoin with the Luna Foundation Guard.

The 3AC fallout led to severe disruptions across the crypto sector, impacting lenders like BlockFi, Voyager, and Celsius, which later filed for bankruptcy due to exposure to the fund. The current selling wave may not be as catastrophic, but analysts warn that high whale activity could trigger sharp price swings.

Macro Events Fueling Crypto Swings

QCP Capital highlighted that the current price fluctuations stem from various macroeconomic events. Last week, DeepSeek’s market activity and U.S. trade policy shifts contributed to turbulence. Former U.S. President Donald Trump’s proposed 25% tariffs on steel and aluminum briefly rattled financial markets.

Given that Mexico and Canada are key steel suppliers to the U.S., concerns about renewed trade tensions have emerged. Stance on potential sanctions against Japan has further unsettled investors. This follows the White House’s recent decision to block Nippon Steel’s acquisition of U.S. steel.

Cautious Bitcoin Sentiment Prevails

Bitcoin briefly dropped to $95,000 in response to last week’s uncertainty but quickly rebounded. Analysts suggest that market sentiment rather than fundamentals drove the price movements. Right now, traders favor put options until April, signaling cautious sentiment and a lack of strong bullish catalysts.

As of press time, Bitcoin is priced at $97,449.43, reflecting a 1.05% increase in the past 24 hours and a 2.77% gain over the past week. With a circulating supply of 20 million BTC, its market cap stands at $1.93 trillion.

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