Bitcoin is facing renewed capital outflows as falling prices squeeze investor profits and force some large investors to exit their positions.
Although a large whale recently cut its losses after months of holdings, broader market data showed that demand has not disappeared, with traders still accumulating assets within a shorter time frame.
At the time of writing, Bitcoin [BTC] had fallen from a recent high of almost $72,000 to around $67,000. The decline occurred in less than 96 hours, highlighting a period of increased volatility and weakening short-term demand.
As the market retreated, several investors began closing their positions to limit further losses.
Whale capitulates after months of holding on
Large holders often reassess their positions during sharp market swings, especially when extended holding periods begin to translate into significant unrealized losses.
Data from OnchainLens showed through which a great whale acquired approximately $47.74 million worth of Bitcoin in the form of Packaged Bitcoin (WBTC) around October, about five months ago, when assets were trading near their cycle highs.
The wallet closed the entire position on March 7. The exit resulted in an estimated loss of approximately $19.62 million, leaving approximately $26.51 million in value after liquidation.
Such moves often attract market-wide attention because whales control large sources of liquidity. Their decisions can affect sentiment, especially when they exit during bear price conditions.
In many cases, traders interpret these exits as signals that more short-term downsides may remain.
Market profitability weakens over longer holding periods
Beyond individual whale activity, broader market data shows that Bitcoin has remained unprofitable for many investors who entered the market in recent months.
According to spot current statistics of MintGlassInvestors who bought Bitcoin about 150 days ago are now facing losses of about 18.8% on average.
During that period, the market recorded inflows of approximately $345.78 billion, compared to outflows of $362.42 billion.
This leaves a net flow of $16.64 billion, which highlights ongoing capital pressures and helps explain why some large investors have started exiting their positions.
Source: CoinGlass
However, shorter investment periods show a slightly different picture. Investors who entered between 120 and 60 days ago have seen a partial recovery in price performance.
While many positions remain marginally negative, the magnitude of losses has decreased compared to previous entries.
A useful measure for assessing market conditions is the ratio of net inflows to total market capitalization. When this ratio decreases, it often indicates that selling pressure is easing and the market may be moving into an accumulation phase.
At the time of writing, this ratio was almost negative 0.0031% over the past day. This marks a notable improvement from about 150 days ago, when the measure was near negative 1.2%.
Short-term buyers remain active
Although some whales are exiting their positions, short-term market behavior suggests that buying interest has not disappeared.
Spot net flow data showed that exchanges recorded net outflows of around $416.9 million worth of Bitcoin over the past two days. This move indicates that traders have been transferring assets into private portfolios, a pattern often associated with accumulation rather than immediate selling pressure.
Source: CoinGlass
The market has now recorded two consecutive days of net buying activity, reflecting continued interest from bullish participants.
Exchange reserve facts supports this trend. The total number of Bitcoins held on exchanges has fallen to approximately 2.43 million BTC, compared to approximately 2.47 million BTC on March 5, just before the latest wave of withdrawals began.
Lower foreign exchange reserves generally indicate reduced immediate sales supply, which can support price stability when demand returns.