Bitcoin whale capitulates after 5 months – Yet exchanges bleed $416.9mln

Bitcoin is facing renewed capital outflows as falling prices compress investor profits and force some large holders to exit positions.

While a major whale recently cut losses after months of holding, broader market data showed that demand has not disappeared, with traders still accumulating the asset on shorter timeframes.

At the time of writing, Bitcoin [BTC] had fallen from a recent high near $72,000 to roughly $67,000. The decline unfolded within less than 96 hours, highlighting a period of heightened volatility and weakening short-term demand.

As the market retraced, several investors began closing positions to limit further losses.

Whale capitulates after months of holding

Large holders often reassess positions during sharp market swings, particularly when prolonged holding periods begin to translate into significant unrealized losses.

Data from OnchainLens showed that a major whale acquired approximately $47.74 million worth of Bitcoin in the form of Wrapped Bitcoin (WBTC) around October, roughly five months ago, when the asset traded near its cycle highs.

The wallet closed the entire position on the 7th of March. The exit resulted in an estimated loss of about $19.62 million, leaving roughly $26.51 million in value after the liquidation.

Such moves often attract attention across the market because whales control large pools of liquidity. Their decisions can influence sentiment, particularly when they exit during declining price conditions.

In many cases, traders interpret these exits as signals that additional downside could remain in the short term.

Market profitability weakens across longer holding periods

Beyond individual whale activity, broader market data shows that Bitcoin has remained unprofitable for many investors who entered the market during the past several months.

According to spot flow metrics from CoinGlass, investors who purchased Bitcoin roughly 150 days ago are now facing losses of about 18.8% on average.

During that period, the market recorded approximately $345.78 billion in inflows against $362.42 billion in outflows.

This leaves a net flow of negative $16.64 billion, highlighting sustained capital pressure and helping explain why some large holders have begun to exit positions.

Source: CoinGlass

However, shorter holding periods present a slightly different picture. Investors who entered between 120 and 60 days ago have seen partial recovery in price performance.

While many positions remain marginally negative, the scale of losses has declined compared with earlier entries.

A useful metric for assessing market conditions is the ratio between net inflows and overall market capitalization. When this ratio shrinks, it often indicates that selling pressure is easing and the market may be transitioning toward an accumulation phase.

At press time, this ratio stood near negative 0.0031% over the past day. This marks a notable improvement from roughly 150 days ago, when the metric stood near negative 1.2%.

Short-term buyers remain active

While some whales exit positions, short-term market behavior suggests that buying interest has not faded.

Spot netflow data showed that exchanges recorded a net outflow of roughly $416.9 million worth of Bitcoin over the past two days. This movement indicates that traders have been withdrawing assets into private wallets, a pattern often associated with accumulation rather than immediate selling pressure.

Source: CoinGlass

The market has now recorded two consecutive days of net buying activity, reflecting sustained interest from bullish participants.

Exchange reserve data supports this trend. Total Bitcoin held on exchanges has declined to around 2.43 million BTC, down from approximately 2.47 million BTC recorded on the 5th of March, just before the latest wave of withdrawals began.

Lower exchange reserves typically signal reduced immediate selling supply, which can support price stability when demand returns.