The Bitcoin price extended its decline on Tuesday, plunging below $103,700, its lowest level since June, as the crypto market faced one of the largest liquidation waves in weeks.
Data from Coinglass showed that more than $1.27 billion in leveraged positions were wiped out in 24 hours, with long traders accounting for nearly 90% of the losses. The slide follows Bitcoin’s break below its 200-day moving average near $109,800, a critical support zone that had held firm for four months.
Market analysts attributed the downturn to renewed uncertainty over Federal Reserve policy. Chair Jerome Powell’s remarks last week tempered expectations of a December rate cut, sending Treasury yields higher and weakening investor appetite for risk assets like Bitcoin.
According to Farside Investors, BlackRock’s iShares Bitcoin Trust (IBIT) was solely responsible for the drawdown, while other major ETFs like Fidelity’s FBTC and ARK 21Shares’ ARKB remained neutral.
The sharp ETF withdrawals coincided with an intensification of whale activity across exchanges. Data from Lookonchain revealed that long-term holders moved over 400,000 BTC, around 2% of the total supply, to trading platforms in the past 30 days.
One early investor reportedly transferred 13,000 BTC ($1.4 billion) since October, while another whale deposited over 3,200 BTC to Kraken. Analysts suggest that these moves signal mounting profit-taking and a weakening of conviction among long-term holders.
Despite rising self-custody activity on Binance, on-chain data from CryptoQuant indicated that dip-buying momentum remains fragile, suggesting accumulation may not yet be strong enough to reverse the trend.
Still, some strategists maintain that the long-term bull trend remains intact. “Each correction since 2023 has been followed by renewed accumulation near the 50-week moving average,” said Joel Kruger of LMAX. “The current pullback may be painful, but it’s consistent with Bitcoin’s cyclical structure.”
As market fear intensifies and ETF flows remain negative, the Bitcoin price’s ability to defend the $100K level could determine whether the next phase is a temporary correction or the start of a deeper retracement.
Cover image from ChatGPT, BTCUSD chart from Tradingview
