Bitcoin Price Plunges as Whales & Short-Term Holders Offload 40K BTC

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Georgi Minev
3 August, 2025, 18:43
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Bitcoin Dips Below $112K as Hodlers and Whales Trigger Major Sell-Off: Onchain Data Reveals Alarming Trend

Bitcoin’s price dropped below the critical $112,000 mark over the weekend, triggering a wave of selling pressure from both short-term holders and crypto whales. This marks a sharp pivot in market sentiment, despite a brief recovery to $114,000 by August 2, with data signaling potential continued weakness in the days ahead.

Onchain Data Signals Panic: 40,000 BTC Sent to Exchanges in Loss

According to onchain analytics platform CryptoQuant, short-term Bitcoin holders (STHs) sent more than 40,000 BTC to exchanges at a loss on August 1 — the largest single-day amount since July 15. This behavior reflects increasing anxiety among recent buyers who are now “bleeding BTC,” as described by CryptoQuant analyst J. A. Maartunn.

The substantial outflow underscores how market participants are rushing to cut losses amid growing fears of deeper corrections.

Whales Add Fuel to the Fire: Exchange Whale Ratio Hits 0.70+

Adding to the turbulence, the Exchange Whale Ratio — which measures the share of exchange deposits attributed to large holders — surged past 0.70. According to CryptoQuant contributor Arab Chain, this indicates that whales are driving the bulk of recent deposits, traditionally a bearish signal.

“When large deposits coincide with whales dominating these deposits, the market typically enters a phase of selling pressure and rapid decline,” Arab Chain explained.

The combined effect of panic among smaller investors and strategic unloading by whales suggests that Bitcoin’s latest dip is not just a short-term blip, but a coordinated wave of de-risking.

Exchange Net Inflows and Rising Binance Volume

Data further revealed that net BTC inflows to exchanges totaled 16,417 BTC on August 1 alone, reinforcing the view of an accelerated sell-off.

Bitcoin's Battle at $116K Resistance: Why the Price Action is Critical for Short-Term Holders

Meanwhile, Binance, the world’s largest exchange by volume, has experienced steadily rising daily Bitcoin inflows since early July. Contributor Darkfost noted:

“Daily inflows have increased from around 5,300 BTC to 7,000 BTC today, marking a consistent uptick. This ends a prolonged downtrend since March, suggesting a shift in investor behavior.”

This renewed influx to centralized platforms often signals preparation for selling, aligning with broader de-risking activity.

Institutional Panic: U.S. Spot Bitcoin ETFs See $812M in Outflows

The fear isn’t limited to retail or whales. U.S. spot Bitcoin ETFs saw a record-breaking $812 million in outflows on August 1, the second-largest daily drawdown ever.

This level of institutional flight confirms that confidence is eroding even among the more conservative, longer-term investors, potentially spelling more downside risk.

Trader Insights: “Not Your Average Weekend Price Action”

Prominent crypto trader Skew flagged unusual activity in Bitcoin’s order books over the weekend. A large-volume market participant, likely an institutional desk, appeared to be offloading risk in anticipation of the coming week.

“Very sizeable quoting like this on a weekend spells out that a very large player needed to bail out of risk before Sunday,” Skew said, citing illiquid weekend conditions and wider spreads as factors complicating the exit.

This raises red flags about major rebalancing behind the scenes, possibly in reaction to macroeconomic uncertainty or anticipated regulatory headwinds.

BTC/USD Market Snapshot

As of August 2, Bitcoin is trading at $114,000, rebounding slightly but still below key support levels seen in July. The market is now watching closely to determine whether this bounce is sustainable or merely a temporary pause in a broader downtrend.