How panicked is the crypto world? Even the "first-generation whales" are fleeing, Owen Gunden liquidated $1.3 billion in Bitcoin holdings in one month
On Thursday, Owen Gunden transferred the last 2,499 bitcoins to the cryptocurrency exchange Kraken, worth $228 million. Since October 21, this wallet has sold approximately 11,000 bitcoins, completely liquidating its position. In stark contrast, institutional investors have continued to increase their holdings, with the proportion of shares in the U.S. spot Bitcoin ETF rising from 27% in the second quarter of 2024 to 40%
At a time when retail investors are panic selling, early Bitcoin holder Owen Gunden has liquidated his entire Bitcoin position worth approximately $1.3 billion within a month, while institutional investors' holdings in Bitcoin ETFs have surged to a new high of 40%.
On Thursday, the wallet marked by blockchain data platform Arkham transferred the last 2,499 Bitcoins, valued at $228 million, to the cryptocurrency exchange Kraken. Since October 21, this wallet has sold approximately 11,000 Bitcoins, completely clearing its holdings.
This sell-off occurred amid extremely pessimistic market sentiment. According to CryptoQuant data, the Bitcoin market condition has deteriorated to the "most pessimistic" level of this cycle, with its bull market index dropping to an extremely bearish range of 20/100. So far in November, Bitcoin ETFs have recorded an outflow of $2.8 billion.
In stark contrast, institutional investors continue to accumulate. The latest 13-F filings show that despite the spreading panic among retail investors, the proportion of institutional holdings in the U.S. spot Bitcoin ETF has jumped from 27% in Q2 2024 to 40%.
"First Generation Whale" Completes Liquidation
Owen Gunden is one of the wealthiest early Bitcoin holders. According to Arkham's cryptocurrency billionaire list, he has a net worth of approximately $561 million, ranking eighth in the cryptocurrency field.
Gunden was an early Bitcoin arbitrage trader, active on exchanges such as Tradehill and the now-defunct Mt. Gox. Before Mt. Gox ceased operations in 2014, he traded tens of thousands of Bitcoins on the platform, accumulating on-chain wealth.
This liquidation began on October 21 and lasted for more than a month. After the final transfer was completed, this "first generation whale" has reduced his Bitcoin holdings to zero.
Institutions Build Positions Against the Trend
While retail investors panic sell, institutional investors are continuously increasing their holdings. Bitcoin analyst Root stated on social platform X that on Wednesday, the proportion of institutional holdings in Bitcoin ETFs reached 40%, significantly up from 27% in Q2 2024. At that time, approximately 1,119 institutions held investments through the U.S. spot Bitcoin ETF.
Root pointed out that the 40% figure is a "conservative estimate," as only institutions managing over $100 million are required to submit 13-F reports to the U.S. Securities and Exchange Commission.
Data from Farside Investors shows that despite the $2.8 billion outflow from Bitcoin ETFs since November, the increase in institutional holdings indicates that institutional investors are holding their positions firmly.
Market Sentiment Hits Cycle Low
According to a previous report by Cointelegraph, CryptoQuant's bull market index has dropped to 20/100, reaching an extremely bearish level, marking the most pessimistic moment for the Bitcoin market in this cycle.
Concerns about the end of the bull market are growing, leading retail investors to exit the market. This sentiment sharply contrasts with the behavior of institutional investors, who continue to increase their holdings in Bitcoin spot ETFs amid market panicBitcoin is currently priced at approximately $85,823. The divergence between institutions and retail investors highlights the current differentiation in confidence among market participants.
