The cryptocurrency market faced significant turmoil on Friday as Bitcoin (BTC) prices plummeted below the crucial support threshold of $90,000. This downturn followed a brief upward movement earlier in the week, where Bitcoin had seen a brief rally that lifted its price by approximately $3,000.
According to data from CoinGlass, the market experienced nearly $430 million in liquidations over a 24-hour period, heavily impacting leveraged long positions, which accounted for about $350 million of that total. During this chaotic period, Bitcoin recorded a 3.5% decline, settling at approximately $89,120—marking a significant drop of 29% from its all-time high of over $126,000, reached in October.
Market analyst OxNobler noted in a social media post the influence of both retail and institutional investors on the price drop. He highlighted substantial sell-offs from major players in the market as contributing factors to Bitcoin’s decline. Notable transactions included the world’s largest cryptocurrency exchange, Binance, which sold 4,000 BTC, U.S.-based Coinbase liquidating 5,675 BTC, and Fidelity, a traditional finance giant, offloading 3,288 BTC. Additionally, market maker Wintermute sold 1,793 BTC.
Further complicating the situation, it appears that Strategy—formerly known as MicroStrategy and noted for being the largest public company holder of Bitcoin with over 650,000 coins—also sold off over 3,820 BTC during the same timeframe. This duration saw speculation surrounding Strategy’s potential to liquidate parts of its holdings due to the substantial financial losses stemming from the declining Bitcoin prices. When questioned about selling off Bitcoin, Strategy CEO Phong Le acknowledged that although the firm’s previous CEO, Michael Saylor, was against selling, changes in circumstances may prompt different actions if their stock trades below the net value of their Bitcoin assets.
Despite these heavy sell-offs, Coinbase’s institutional division has expressed optimism about a potential recovery in the crypto market as early as December. Analysts attribute their positive outlook to improving liquidity, a 92% probability of the Federal Reserve cutting interest rates, and supporting macroeconomic conditions. They see potential reasons for recovery in the liquidity rebound, the strength of the “AI bubble,” and the appeal of short US dollar trades.
However, OxNobler cautions that the landscape may not be as optimistic as it appears. Alongside institutional selling activities, he revealed that BlackRock, the largest asset manager globally, recently divested $130 million worth of Bitcoin and Ethereum (ETH). Moreover, Vitalik Buterin, one of Ethereum’s co-founders, has seemingly resumed selling Ethereum, with millions of ETH being transferred from the foundation’s wallet through the Gnosis Safe protocol.
Overall, OxNobler warns that these institutional activities may play a role in price manipulation, undermining Bitcoin’s potential to rise to higher resistance points. The daily chart confirms Bitcoin’s slide below $90,000, marking a challenging time for the cryptocurrency market.
