 ▲ Bitcoin (BTC) / ChatGPT-generated image |
Bitcoin (BTC) whale transaction volume has plunged 72% amid the ongoing market downturn, starkly revealing extreme fear and a tightening liquidity crisis across the market.
According to crypto-focused outlet U.Today on February 17 (local time), the number of whale transactions in the Bitcoin market fell sharply by 72% over the past two weeks, dropping from 5,767 to 1,637. Citing data from on-chain analyst Ali Martinez, the report suggests that large investors have halted activity and shifted to a wait-and-see approach amid a lack of clear market direction and ongoing price corrections. The Crypto Fear & Greed Index currently stands at 13, indicating that the market has entered a phase of extreme fear.
Since the start of 2026, Bitcoin has recorded four consecutive weeks of weekly losses, continuing its sluggish trend. Ahead of the U.S. market opening, Bitcoin extended its decline in tandem with weakness in stock futures, now down 46.12% from its all-time high of $126,198 recorded last October. During the same period, approximately $2 trillion has evaporated from the overall cryptocurrency market capitalization, reflecting a massive capital outflow.
Outflows have also accelerated in the exchange-traded fund (ETF) market, adding further downward pressure. U.S.-listed spot Bitcoin ETFs recorded $360 million in withdrawals last week alone, marking four consecutive weeks of net outflows. According to Arkham data, more than $3.4 billion has exited ETF products over the past four weeks, representing the longest outflow streak since March of last year.
Market experts remain divided on whether Bitcoin is forming a bottom. The $60,000 level is considered a strong psychological support line; however, further downside cannot be ruled out if risk appetite fails to recover. Standard Chartered has warned that Bitcoin could fall to $50,000 before rebounding and lowered its year-end target price from $150,000 to $100,000.
Despite the bearish market conditions, companies such as Strategy continue accumulating Bitcoin. Strategy recently purchased an additional 2,486 BTC for approximately $168.4 million, increasing its total holdings to 717,131 BTC. As declining whale activity and ETF outflows weigh on the market, attention is focused on whether long-term corporate accumulation strategies can serve as a meaningful support base.
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