BTC Crash Triggers Spike in $1M Bitcoin Whale Buys: On-Chain Data

Bitcoin (BTC) is experiencing its most hectic week for large transactions in 2025, with more than 29,000 transfers exceeding $1 million recorded.

This spike in whale activity comes as the cryptocurrency’s price tests critical support levels, dropping to around $91,700 and stirring debate about whether this is a final shakeout before a recovery.

A Market Divergence

While the broader market sentiment has been quite negative, data from analytics firm Santiment showed more than 102,900 Bitcoin transactions above $100,000 and over 29,000 above $1 million so far this week, calling it a strong candidate for the most active whale week of 2025, with flows shifting from dumping to accumulating.

This suggests that well-funded investors are using the recent price drops as a buying opportunity. One notable example from trader Kyle Chassé highlighted a single purchase of 1,300 BTC, worth approximately $121 million, from custodian BitGo.

The activity matches with on-chain analysis from MorenoDV_, who noted that a specific cohort of long-term, “price-insensitive” holders has absorbed 186,000 BTC since October 6.

While it is the largest accumulation spike in recent cycles, it has seen prices move south instead of triggering a typical rally, a rare anomaly that has stumped market observers. At the time of writing, BTC had fallen about 28% from its all-time high of around $126,000 set on October 6, with an 11.5% drop in just the last week.

Interpreting the Signals

The conflicting signals have created a split in market interpretation. Some analysts see the aggressive accumulation as a foundation for a strong rally once retail capitulation is complete and available supply dries up.

However, others warned that it could represent a “catching falling knives” scenario, with the potential for further downside if key support levels break. According to technical analyst EGRAG CRYPTO, Bitcoin is currently testing the 21-period Exponential Moving Average (EMA) on its monthly chart, a level that has separated bull markets from bear markets in the past. Holding above this level would suggest the bull market structure remains intact.

Still, commentators like Axel Adler Jr. have noted that bearish pressure in the futures market and a market sentiment index reading of -89 are creating maximum stress, making the possibility of a swift recovery difficult without a positive catalyst. His assessment is similar to another analysis that suggests the current pattern mirrors a shakeout seen in Q1 2025, potentially putting the market in the final stages of a downturn before a reversal takes shape.

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