Major Bitcoin Whale Dumps $1.3 Billion Holdings as Long-Term Investors Exit Market

TLDR

• Long-term Bitcoin holder Owen Gunden sold his entire 11,000 BTC stack worth $1.3 billion since October 21, with his final 2,249 BTC moved to Kraken exchange on November 20.
• Long-term Bitcoin holders continue selling their holdings despite BTC falling below $90,000, breaking from the typical pattern of accumulating during price corrections.
• Over 6.96 million BTC are now held at a loss as of November 20, the highest level of unrealized losses since January 2024.
• Research from Citi shows the number of whales holding more than 1,000 BTC has declined, while Bitfinex reports wallets with over 10,000 BTC reduced holdings by 1.5% in October.
• Bitcoin dropped below the $90,000 support level on November 20 as selling pressure from major holders continues.

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Bitcoin fell below the $90,000 support level on November 20 as selling pressure from major holders continues to mount. The drop marks a turning point for the flagship cryptocurrency as long-term investors show signs of weakening confidence.

Bitcoin (BTC) Price

Owen Gunden, a long-time Bitcoin holder and former LedgerX board member, moved his final 2,249 BTC to Kraken exchange in the early hours of November 20. The transfer, worth approximately $228 million, completed his total sell-off of 11,000 Bitcoin since October 21.

Gunden’s entire stack was valued at roughly $1.3 billion. He built his wealth through arbitrage trading on now-defunct exchanges including Mt. Gox. The whale is considered among the top ten richest individuals in crypto.

On-chain analytics service Lookonchain first reported the transfer. The move sparked immediate concern across social media platforms. Many traders view large transfers to centralized exchanges as signals of imminent selling activity.

Broader Selling Trend Among Bitcoin Veterans

The sell-off is part of a wider pattern among long-term Bitcoin holders. Investment analytics platform Swissblock detected continued selling pressure from this group through their Net Position Change metric. These seasoned investors typically reduce selling during corrections and begin accumulating.

However, the current trend differs from historical patterns. Long-term holders are maintaining their distribution despite Bitcoin’s price decline. This continued selling pressure suggests deeper caution within the market.

More than 6.96 million BTC are currently held at a loss as of November 20. CryptoQuant analyst Darkfost reports this represents the highest level of unrealized losses since January 2024. The data comes from the BTC Supply in Profit/Loss metric.

The losses stem from recent purchases near Bitcoin’s previous all-time high. This explains panic selling among short-term holders who entered positions at elevated prices. The current correction remains below the cycle’s deepest drawdown.

Research from Citi found that the number of whales holding more than 1,000 BTC has declined. Bitfinex researchers identified a similar pattern in October. Wallets containing over 10,000 BTC reduced their holdings by approximately 1.5% during that month.

The reduction in whale holdings doesn’t necessarily indicate aggressive selling. However, analysts interpret the trend as weakening conviction among Bitcoin’s largest investors. Some market observers argue that reducing early-holder supply could improve overall market structure.

Darkfost noted that increased unrealized loss levels during bullish trends historically create buying opportunities. The analyst described this period as when the sector’s discussed “change of hands” narrative typically occurs. Swissblock suggests selling pressure must fade before Bitcoin can rebound and restore bullish momentum.

Bitcoin’s price action on November 20 reflects these underlying pressures as the cryptocurrency continues trading below the $90,000 level.

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