Bitcoin drops 5%, falls below $65,000 amid increased whale selling and loss-taking by recent buyers

3 days ago7 min read

Bitcoin experienced a sharp decline on Monday, falling 5% and breaking below the $65,000 support level as large holders moved assets to exchanges and recent buyers capitulated. On-chain metrics reveal a spike in whale transfers to trading platforms and a rise in short-term spent output profit ratio (SOPR), indicating panic selling from latecomers.The sell-off unfolded against a backdrop of geopolitical tensions and uncertainty surrounding Federal Reserve policy, which amplified risk aversion. However, this move appears to be a market correction rather than a crash, shaking out speculative excess.Altcoins followed suit, with Ethereum, Solana, and XRP dropping between 3% and 5% as the broader market de-risked. Notably, long-term holders showed no signs of distress; wallets accumulating more than one Bitcoin continued to grow, suggesting informed investors are using the dip to build positions.The $65,000 level is now critical; a weekly close below it could open the door to $60,000, which would further cleanse the market of short-term speculators and reset leverage. Short-term direction remains tied to upcoming inflation data and commentary from Federal Reserve Chair Jerome Powell. Despite the volatility, Bitcoin's fundamentals as a scarce asset remain intact, with a 5% decline representing a routine event for seasoned market participants.

#bitcoin

#whale selling

#price drop

#loss locking

#market correction

#$65

#000 support

#macro pressure

#crypto sell-off

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