Bitcoin Investors Rush for the Exits as Prices Slip Below $112K Amid Whale Sell-Offs
Bitcoin’s price volatility took a sharp turn over the weekend as it plunged below $112,000, prompting a wave of selling pressure from both short-term holders and whales.
According to data from on-chain analytics platform CryptoQuant, exchange inflows surged dramatically on Aug. 1, signaling a growing risk-off sentiment in the market.
Bitcoin Hodlers Panic as Losses Mount
CryptoQuant’s metrics revealed that more than 40,000 BTC were sent to exchanges at a loss by short-term holders (STHs) on Aug. 1 alone.
Bitcoin STH coins sent in profit/loss to exchanges (Source: CryptoQuant)
This marked the highest single-day total since mid-July and suggests that panic selling is gripping newer market participants.
Whales Join the Sell-Off
Adding fuel to the fire, whales—wallets holding large amounts of Bitcoin—have also been offloading their positions. The Exchange Whale Ratio, a CryptoQuant indicator that tracks the proportion of large transactions relative to all exchange inflows, spiked above 0.70.
According to CryptoQuant contributor Arab Chain, this threshold often signals sustained selling pressure and potential for further price drops.
“When large deposits coincide with whales dominating these deposits, the market typically enters a phase of selling pressure and rapid decline,” Arab Chain warned.
Bitcoin exchange whale ratio (Source: CryptoQuant)
Binance Sees Steady Climb in Inflows
The latest sell-off is part of a broader trend observed since early July. Contributor Darkfost noted that the 30-day moving average of Bitcoin inflows to Binance has risen consistently, climbing from 5,300 BTC to 7,000 BTC daily.
Bitcoin BTC inflows 30-day moving average (Source: CryptoQuant)
“While this rise isn’t particularly sharp yet, it ends a prolonged downtrend, which had been in place since March, suggesting a shift in investor behavior,” Darkfost wrote.
This increase in exchange activity comes as Bitcoin prices struggled to hold above $110,000 after breaking through the level for the first time in early July.
Institutions Retreat as ETFs Shed $812M
The selling pressure wasn’t limited to retail and whale investors. U.S.-based spot Bitcoin ETFs recorded outflows totaling $812 million on Aug. 1, marking the second-largest single-day drawdown ever.
The move underscores broader de-risking across institutional portfolios, possibly spurred by macroeconomic concerns.
Weekend Liquidity Exposes Large Players
The unusual weekend price action also drew attention from traders monitoring exchange order books. Pseudonymous trader Skew pointed out large-volume quoting behavior on Saturday, indicating that a major market participant was eager to offload BTC before the new trading 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 posted on X. “Since weekends are often more illiquid and have wider spreads, this means a desk would have to quote sufficient liquidity to facilitate a large client selling off that risk without causing the market to slip.”
