## Bitcoin (BTC) Starts the Week with a Decline
Bitcoin (BTC) began the week on a downward trend, continuing the sharp drop experienced on Monday into Tuesday. After a brief stabilization above $91,000, renewed selling pressure pushed BTC to new yearly lows. By mid-Tuesday, the price had fallen to $87,081, with daily liquidations exceeding $870 million, as reported by Coinglass data. The wider crypto market also faced challenges, with total market capitalization decreasing by 8.9% to $3.01 trillion during the same timeframe.
Despite the downturn, Bitcoin whales took advantage of the situation to accumulate more BTC. Analysts from IntoTheBlock noted that large holders purchased approximately $2.35 billion worth of Bitcoin within hours of the price drop. “Whales are buying. 26,430 BTC just flowed into whale accumulation addresses, often linked to OTC deals and long-term custody,” the analysts tweeted.
## Factors Contributing to Selling Pressure
Bitcoin’s recent decline is attributed to several factors contributing to selling pressure. Crypto analyst Nic pointed out that ETF outflows have been substantial, with cumulative withdrawals reaching $649 million so far this week. He also suggested that a slowdown in institutional “cash and carry” trades might be adding to the downward pressure. Macroeconomic uncertainties are further impacting the market, with Nic highlighting postponed tariffs against Mexico and Canada as a potential trigger for the recent sell-offs. Additionally, Bitcoin’s drop below its 100-day moving average, a historically significant support level, raises concerns. Based on on-chain data, he indicated that BTC could find support around $71,600, aligning with the lower standard deviation of the short-term holder (STH) cost basis.
## Insights from Industry Experts
Former BitMEX CEO Arthur Hayes shared his perspective, linking the drop to ETF sales and suggesting further downside for Bitcoin. “Bitcoin goblin town incoming: Lots of $IBIT holders are hedge funds that went long ETF short CME futures to earn a yield greater than where they fund, short-term US treasuries,” Hayes tweeted. “If that basis drops as $BTC falls, these funds will sell $IBIT and buy back CME futures. These funds are in profit, and given basis is close to UST yields, they will unwind during US hours and realize their profit. $70,000 I see you.”
## Cautious Optimism Among Analysts
However, some analysts maintain a cautiously optimistic outlook. On Monday, Darkfost from CryptoQuant observed that the 30-day retail demand indicator has returned to the neutral zone at 0%, a shift that often precedes price rebounds. “This marks a significant shift from the previous highly negative value of approximately -21%, a level not seen since 2021. Notably, past instances of recovering retail demand have often coincided with upward price movements in the short-term (several weeks or months),” he wrote.
Elsewhere, analyst Rekt Capital emphasized the importance of Bitcoin reclaiming the $96,700 level by the end of February. According to him, a monthly close above this level would confirm a breakout from the bullish flag formation, potentially setting the stage for future gains.
