Bitcoin Updates: Retail Investors in Panic While Whales Accumulate—The Fragile Turning Point for Crypto

Bitcoin's sharp decline below $90,000 has sparked intense "extreme fear" among individual investors, as

- marking its lowest reading since the bear market of 2022. In contrast, activity from institutions and whales points to a split in sentiment, with major holders . The recent price slide, fueled by a technical "death cross" and a halt in ETF inflows, has wiped out Bitcoin's gains for 2025 and the onset of a wider bear market.

The death cross—a bearish indicator that occurs when the 50-day moving average falls below the 200-day average—has coincided with shrinking liquidity and a notable slowdown in U.S. spot ETF inflows. These investment vehicles, which took in over $25 billion earlier this year,

as worries mount that the Trump administration's tariff policies could postpone Federal Reserve rate cuts. Corporate buyers, who were actively acquiring in the first half of 2025, .

Retail anxiety has intensified, with social media awash in panic and forced liquidations accelerating the downward trend. In just the past day, Bitcoin saw $116.8 million in liquidations, with $95.3 million coming from long positions

. The selloff has been further driven by large on-chain transactions, such as a $297 million whale transfer from Bitfinex to an unidentified wallet, .

Yet, the moves of institutions and whales paint a different picture. Despite the turmoil, major entities are stepping in. For example,

, boosting its total holdings to nearly 650,000 BTC. In another case, a whale lost $5.5 million on leveraged short bets against Bitcoin and , . Meanwhile, the collapsed exchange Mt. Gox , a move often preceding repayments to creditors.

Experts remain split on what this means. Some caution that a deeper pullback could occur if Bitcoin doesn't recover crucial support levels. "The death cross and mounting liquidations are warning signs," stated

. Others believe this is a normal mid-cycle correction. Maja Vujinovic from FG Nexus pointed out that strong on-chain accumulation and historical trends indicate a prolonged bear market may not be developing .

The Federal Reserve's upcoming December rate decision is seen as a key event. With just 42% of traders now expecting a rate cut—down from 93% in October—macroeconomic uncertainty continues to dampen sentiment

. At the same time, the U.S. government shutdown has postponed important economic reports, .

As the market weathers this period of volatility,

can help steady prices or if retail panic will push Bitcoin down to the $85,000–$87,000 support range. For now, the cryptocurrency market remains fragile, with both bulls and bears preparing for what comes next.