30% of Bitcoin Locked Up by Major Players – So Why is the Price of BTC Falling? - Bitcoin Platform - Bitcoin | Altcoins | Blockchain

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Posted: December 16, 2025

Institutions love their Bitcoin! Large holders now control much of the supply, US banks are introducing more Bitcoin-linked products and demand has not gone away.

Still, prices have fallen because leverage broke first.

The big hands are holding Bitcoin

Source: Glassnode

Institutional holders now own approximately 5.94 million Bitcoin [BTC] (almost 30% of the circulating supply). The holding company is spread across stock exchanges, ETFs, listed companies and government bonds.

Long-term balances are rising, while BTC held on the exchange is stagnating. This means that the pressure on the sell side decreases over time.

Source: River

Meanwhile, Wall Street doesn’t want to miss it.

According to River14 of the 25 largest US banks are now building or exploring Bitcoin products, from trading desks to custody services. These are largely aimed at wealthy customers.

The infrastructure is built before the next phase of demand arrives.

The build-up makes the latest dip easier to misinterpret.

The sale was on guided by leverage on the futures market. As the chart shows, every sharp drop in Bitcoin’s price is accompanied by spikes in long-term liquidations on the exchanges.

Source: CryptoQuant

In recent weeks, traders have piled into highly leveraged long positions, betting on more upside potential. When prices fell below key levels, those positions were automatically closed.

This caused forced sell orders in the market. These types of sales produce rapid snowballs, with one liquidation pushing the price down and triggering another.

A line that the market cannot ignore

Now the attention shifts to where Bitcoin is structurally positioned.

On Alphractal’s long-term 2Y SMA Multiplier chart, BTC is dangerously close to its two-year SMA, at almost $82,800. This level has been important in every cycle.

Source: Alpharactal

Monthly closes below the 2Y SMA have so far coincided with long bear phases, while holding or reclaiming them has helped the market reset after overshooting. It acts as a regime marker.

As the year draws to a close, holding above this line keeps the long-term structure intact. If we slip under that, it would mean more pressure moving forward.

Final thoughts

Nearly 30% of Bitcoin’s supply is now held by institutions.
The recent price weakness has been due to debt liquidations. $82,800 (2Y SMA) is now the most important line to watch.

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30% of Bitcoin Locked Up by Major Players – So Why is the Price of BTC Falling?

The big hands are holding Bitcoin

When leverage breaks, price follows

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