The cryptocurrency market experienced a significant downturn on Sunday as the price of Bitcoin (BTC) crashed more than 5% in just two hours, dropping below the $65,000 mark. The rapid decline, which saw the world’s largest cryptocurrency fall to around $64,500, has raised concerns about the market’s stability and the intentions of large holders.
Most of the price drop occurred within a two-hour window on Sunday evening, breaking a relatively tight consolidation and accelerating lower into thin liquidity. This marks Bitcoin’s first-ever stretch of six consecutive negative weekly closes, six straight closes below its 100-week moving average, and three consecutive closes beneath its 2021 high.
Market Dynamics and Whale Activity
Trading activity picked up during the drop, signaling active distribution rather than a quiet drift, according to data from Bitcoin Magazine Pro. Exchange metrics from CryptoQuant reveal that whales are dominating inflows. The exchange whale ratio rose to 0.64, the highest level since 2015, indicating that large Bitcoin holders are leading the selling activity.
The average Bitcoin deposit size has climbed to 1.58 BTC, the highest since June 2022, reinforcing that larger players are moving coins onto exchanges. While total inflows have fallen about 60% from the early February spike to roughly 23,000 BTC on a seven-day average, exchange flows remain elevated, leaving the market exposed to further volatility.
Technical Analysis and Market Sentiment
Prior to this price dump, Bitcoin’s price action was relatively muted over the last week. A bounce from the $60,000 level failed to break resistance at $71,800 and instead dipped to support near $65,650 before closing around $67,000 in the week prior. Bears remain in control as buyers have shown little follow-through, leading to a continued downward trend.
However, some big institutions continue to show interest in Bitcoin. Abu Dhabi’s Mubadala Investment Company increased its stake in BlackRock’s iShares Bitcoin Trust (IBIT) to 12.7 million shares worth about $630 million as of December 31, up 46% from the prior quarter. Al Warda Investments also raised its IBIT holdings to 8.22 million shares, continuing its move into regulated Bitcoin ETF exposure. Together, the two Abu Dhabi funds held more than 20 million IBIT shares valued at over $1.1 billion at year-end 2025.
Strategic Moves and Future Outlook
Strategy, a company known for its aggressive Bitcoin accumulation, bought another 2,486 BTC for $168.4 million last week, bringing its total holdings to 717,131 BTC. Strategy executive Michael Saylor hinted on X that Strategy may make its 100th Bitcoin purchase this week, continuing a 13-week accumulation streak despite a $5.8B unrealized loss.
The recent price drop and whale activity highlight the ongoing tug-of-war between institutional investors and retail traders. While the market remains volatile, the continued interest from large institutions suggests a long-term bullish outlook. However, the immediate future remains uncertain, and investors should remain cautious as the market navigates this challenging period.
In the broader context, the cryptocurrency market is facing a range of challenges, including regulatory scrutiny and economic headwinds. The resilience of Bitcoin and other major cryptocurrencies will be tested in the coming weeks as market participants seek to find a new equilibrium.
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