Bitcoin enters a reset phase: Whales sell as BTC leverage gets flushed

In a recent episode, on-chain data from Arkham shows that the Hyperunit whale wallet, linked to Garrett Jin, has sold over $340 million in Bitcoin [BTC], with $341.8 million sent to Binance, signaling likely selling pressure.

The move follows months of high-risk trading marked by sharp gains and heavy losses, including major setbacks on leveraged ETH positions.

At his peak, the whale held nearly $11.5 billion in Bitcoin, but his holdings have now dropped to around $2.2 billion.

Instead of holding during the rally, the whale chose to cut exposure, suggesting a shift toward caution and capital preservation after recent losses.

Hyperunit whale movement

The turning point came on the 1st of February, when the Hyperunit Whale’s heavily leveraged ETH position on Hyperliquid was fully liquidated, leading to a $250 million loss and leaving him with just $53 on the platform.

With Ethereum [ETH] trading near $2,307 at the time, the collapse raised doubts about its ability to continue operating at such a scale and marked the start of a more constrained phase.

Despite this, the whale attempted a comeback in late January by buying over $60 million worth of ETH after earlier selling nearly $100 million.

The whale had previously held more than 223,000 ETH but sold over 30,000 near market lows, locking in losses of around $9 million.

The whale later rebuilt positions worth nearly $750 million across ETH, Solana [SOL], and BTC as ETH traded near $2,828, reflecting short-term confidence but weak long-term conviction.

His aggressive style was already clear in December, when the whale built more than $400 million in ETH exposure after making about $200 million during the October crash.

The whale also unstaked $361 million in ETH, used Aave to borrow $160 million in USDT, and moved funds to Binance, preparing for large leveraged bets while ETH traded near $2,800.

Overall, his recent activity shows a pattern of heavy leverage, large bets, quick re-entries after losses, and constant movement of funds between platforms.

While this strategy once delivered huge profits, changing market conditions have exposed its risks.

The recent $340 million Bitcoin sale suggests a shift toward caution, with lower risk appetite, a focus on liquidity, and reduced confidence in short-term upside.

Once holding over $11 billion in Bitcoin, the Hyperunit Whale now appears to be moving from aggressive expansion toward capital protection, highlighting how even the biggest players remain vulnerable in today’s volatile crypto market.

Bitcoin price action and other metrics

With Bitcoin trading near $71,454.66 at press time, technical indicators suggest that the market is still under bearish pressure.

A weak MACD, red histograms, and an RSI below neutral levels all pointed to slowing bearish momentum.

At the same time, falling Open Interest (OI) showed that traders were pulling back instead of opening new positions.

The sharp drop in OI, from around $61 billion to near $49 billion, signals widespread deleveraging.

Many overleveraged traders have been forced out, while others are choosing to stay on the sidelines due to rising uncertainty. Rather than taking risks, both retail and institutional investors are focusing on protecting their capital in cash or stablecoins.

While this phase is painful in the short term, it can help stabilize the market by lowering overall risk and limiting extreme price swings.

Overall, weak technical signals and falling OI suggest that Bitcoin is going through a reset phase. Bears remain in control for now, but this cleanup process could help create a healthier market once confidence returns.

Until then, trading is likely to stay cautious and highly sensitive to changes in sentiment and liquidity.

Final Thoughts

• According to CoinMarketCap, the whale chose to cut exposure despite BTC trading near recent highs, signaling fading confidence.
• Repeated attempts to recover losses through rapid re-entries suggest short-term opportunism rather than long-term conviction.