Bitcoin Crash: Matt Hougan, Chief Investment Officer at Bitwise, stated late Saturday night that the Bitcoin price (crypto) market could remain volatile for some time as selling pressure on Bitcoin (BTC) intensifies.
On Saturday afternoon, the price of Bitcoin dropped below $66,000—the first time it has fallen to this level since August. In a post on X, Hougan remarked that the current market climate feels much like the middle of 2018, a period when the industry appeared “exhausted” and many investors exited the market.
He suggested that the industry might “wander in the wilderness” for a while before stabilizing. Investors are still in the process of analyzing the long-term implications of the elections, developments surrounding Binance, and stringent monetary policies.
However, Hougan sees a “major opportunity” on the horizon, though he notes it is difficult to predict exactly when it might arrive. He pointed out that Decentralized Finance (DeFi) was the catalyst that helped the market recover from the 2018 downturn; he believes a similar breakthrough could drive a recovery this time as well—though he admits that “predicting such things is impossible.”
‘Whales’ are buying, while others are selling off rapidly
On-chain analytics firm CryptoQuant presented a similar picture on Saturday. They reported on X that while large-scale holders (“whales”) are taking advantage of the price drop to accumulate, their buying is not keeping pace with the volume of selling. The firm noted that Bitcoin has fallen approximately 24% from its recent peak.
According to CryptoQuant, wallets holding between 1,000 and 10,000 Bitcoin have added about 43,700 BTC to their holdings, while wallets holding more than 10,000 Bitcoin have added another 3,300 BTC. Meanwhile, mid-sized holders have been the primary sellers. Wallets holding between 100 and 1,000 Bitcoin have moved approximately 50,500 Bitcoin. Among those holding 10–100 Bitcoin, about 14,400 Bitcoin have been sold.
According to the firm, the core issue is demand. Its 30-day “apparent demand” has fallen to -284,000 Bitcoin. This metric serves as a barometer for net buying across the market. CryptoQuant reports that this is currently at its weakest level since April 2025.
U.S. spot Bitcoin exchange-traded funds (ETFs) have also shifted to the sell side. The firm notes that their 30-day flow has reversed from a purchase of approximately 49,700 Bitcoin to a sale of about 29,600 Bitcoin. Additionally, recent purchases by MicroStrategy (MSTR) have been lower.
Losses Mounting for Short-Term Bitcoin Holders
Recent buyers are now “underwater.” CryptoQuant states that short-term traders paid an average of approximately $80,300 per coin. By September 21, they were sitting on a paper profit of about 35%; now, they are down by approximately 15%.
An increasing number of holders are selling at a loss. The firm observed that, over a 16-day period starting October 29, there were 14 days where coins were sold at a net loss. The total volume sold at a loss amounts to approximately 84,000 Bitcoin. Friday marked the worst day of the drawdown, with roughly 18,500 Bitcoin sold at a loss.
Potential Decline to $57,000
CryptoQuant points out that several former support levels have now turned into resistance levels. One such level is near $73,000, which aligns closely with Bitcoin’s 200-day moving average. The firm has identified support levels at $63,000, followed by $59,800, and a low of $57,700.
Strategists look for a bottom
However, not everyone is pessimistic. James E. Thorne of Wellington-Altus stated on X that a bullish chart pattern remains intact. He attributed the sell-off to leverage rather than weak fundamentals. Thorne noted that Bitcoin needs to climb above $73,000 and subsequently sustain a position above $87,000. If this occurs, he projects the price could reach approximately $117,000 by mid-2027.
He added that his thesis would be invalidated if the price of Bitcoin were to fall below $57,000.
Bitcoin was trading at $64,300, marking a decline of over 5% in the last 24 hours. On StockTwits, retail sentiment toward Bitcoin remains in the “extremely bearish” zone, with discussion volume surrounding the asset having reached a “high” level over the past day.
