Liquidations

Bitcoin’s price remains below $125,000 as the market undergoes a major shift in ownership from Satoshi-era whales to new institutional investors accumulating aggressively. Although October has seen around a 7% gain so far, signaling a healthy start to Q4, this rally feels different. Despite prices hovering near all-time highs, momentum appears to be fading as early adopters take profits and institutional demand grows.
Analysts at 10x Research noted that large institutions have been accumulating Bitcoin through strong ETF inflows, led by BlackRock’s IBIT. Meanwhile, long-term holders from the early Bitcoin days have been selling into price strength, creating a unique market balance where institutional accumulation offsets retail enthusiasm.
Blockchain analytics firm Lookonchain reported that an early Bitcoin whale recently expanded a short position to 3,600 BTC, worth about $438 million, after selling 3,000 BTC earlier this week. Last month, the same trader made headlines by swapping 35,991 BTC—currently valued at $4.38 billion—for 886,371 ETH, worth roughly $3.88 billion. The trader’s short position is currently sitting at an unrealized loss of about $3.66 million, with a liquidation price near $139,900 per BTC.
Analyst Ted Pillows pointed out that a key liquidity zone is forming around the $118,000 level, suggesting potential volatility ahead. According to him, billions in long liquidations are stacked near that price, and a liquidity flush could trigger a short-term sell-off. However, he added that the next move will largely depend on ETF inflows—if buying continues, a quick reversal could follow; if not, further downside is likely.

BitMEX co-founder Arthur Hayes argued that the traditional four-year Bitcoin cycle is no longer relevant. He believes major Bitcoin price movements are now driven by global liquidity conditions rather than halving-induced supply shocks. With the U.S. Federal Reserve cutting interest rates, the Trump administration proposing new stimulus, and both Japan and China easing monetary policy, global liquidity is once again expanding. Hayes concluded that with money becoming cheaper and more abundant, a new bear market is unlikely in the near term and Bitcoin’s true market top may still be far away.
In summary, the current market reflects a transfer of power—old whales are selling, while institutions are building positions. Price consolidation near all-time highs could set the stage for heightened volatility, but disciplined accumulation during this phase has historically proven rewarding for long-term investors.
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