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Bitcoin Price Drops 4% Today as Old Whales Reawaken Amid Leverage Flush

Published by
Steve Muchoki

Bitcoin (BTC) price experienced a flash selloff on Tuesday after hitting its all-time high (ATH) of above $126k on Monday. The flagship coin dropped over 3% in the past 24 hours to reach a range low of about $120,681 before rebounding to trade about $122k at press time. 

The wider altcoin market – with the exclusion of Binance Coin (BNB), PancakeSwap (CAKE), and a few other altcoins – dropped in tandem with Bitcoin. As such, the total crypto market cap had slipped 3.5% to hover about $4.16 trillion at press time.

Major Reasons Why Bitcoin Price Dropped Today

High Leveraged Flush

Following the sudden crypto drop on Tuesday, more than $625 million was liquidated from leveraged traders, with the majority involving long traders. According to market data analysis from CryptoQuant, Bitcoin’s Open Interests (OI) dropped over 5%, the biggest single-day wipeout in six weeks.

Old Whales Reawakening

After BTC price surged to a new ATH on Monday, on-chain data analysis showed an increase in profit-taking. According to data from CryptoQuant roughly 15k BTC, valued at nearly $2 billion, was deposited into crypto exchanges during the last 24 hours.

On Tuesday, the largest Bitcoin whale movement in 2025 was recorded, whereby wallets that were dormant for 3-5 years moved 32,322 BTCs valued at about $4 billion.

What’s Next for BTC Price?

Bitcoin price has been under the influence of high demand from institutional investors, a supportive macroeconomic backdrop, and amid the ‘Uptober’ bullish sentiment. 

From a technical analysis standpoint, BTC price is well-positioned to rebound towards its parabolic phase in the coming weeks. Moreover, BTC price is the digital gold, and the gold price has been in a parabolic rally since mid-August. Additionally, the global money supply has increased gradually in the recent past, which is bullish for Bitcoin and the wider crypto market. 

Steve Muchoki

Steve is a crypto news writer with a passion for decoding market moves. He blends breaking blockchain news with sharp technical analysis and bold price predictions. From Bitcoin rallies to altcoin breakouts, Steve breaks it all down with clarity and insight. Whether you're a trader or just curious, his analysis keeps you ahead of the curve.

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