Why Bitcoin Is Under Heavy Sell Pressure: Whale Moves, Record Liquidations and M2 Decoupling
Bitcoin is under pronounced sell pressure driven by several converging factors. A major whale (nicknamed Garrett Bullish) liquidated positions and deposited over 5,000 BTC (~$345M) to Binance in chunks — a potential precursor to large sell orders. Bitcoin experienced the largest liquidation event of the year, with more than 90,000 BTC wiped out in 24 hours, coinciding with the weakest social sentiment in over four years (social sentiment ≈ -6.90 when BTC traded near $67,960). Technical indicators also look unfavorable. Additionally, BTC has decoupled from the global M2 money supply: while M2 has risen, BTC price has fallen, suggesting capital is not flowing into Bitcoin and may be favoring other risk assets. Combined, these on-chain flows, social metrics and macro decoupling imply continued bearish control in the near term and raise the possibility of deeper retracement levels (surpassing a 50% retracement from all-time high). Traders should watch large exchange deposits, liquidations, social sentiment and M2 movement for signs of capitulation or resumed capital inflows.
Bearish
The article identifies three primary drivers that point to continued near-term downside for Bitcoin: sizable whale deposits to exchanges, record liquidations, and a macro decoupling from M2. Large exchange deposits (5,000+ BTC to Binance) often precede sell orders; when a whale has recently been liquidated and is ’securing’ remaining assets on exchange, the risk of further selling and price pressure rises. The >90k BTC wiped out in 24 hours constitutes a major forced-selling event that increases volatility and can trigger cascading stop-losses. Extremely negative social sentiment suppresses dip-buying and slows recovery, as retail and momentum buyers remain sidelined. Finally, the decoupling from global M2 indicates macro liquidity is not being allocated to BTC, reducing a key source of sustained demand. Historically, similar combinations — large exchange inflows from whales plus sharp liquidation cascades and poor sentiment — have led to extended drawdowns (e.g., 2018 and mid-2022 sell-offs). Short-term impact: elevated volatility, higher probability of further downside and deeper retracements; traders should reduce leverage, monitor exchange inflows/outflows, liquidation heatmaps, and sentiment indicators. Long-term impact: if M2 or macro liquidity shifts back toward risk assets, BTC could recover; however, until capital redeploys, structural demand appears weak and macro signals remain unfavorable.