Fidelity Shocks Market with $103M Bitcoin (BTC) Sale Amid ETF Exodus

February 8, 2025 by Mwongera Taitumu

• Fidelity Sells $103M Bitcoin(BTC) Amid ETF Outflows and Market Volatility
• Whales Accumulate $3B in BTC Despite ETF Liquidations
• BTC price remains below $100K, but whale accumulation rises.

Fidelity’s large-scale Bitcoin(BTC) sale and ETF outflows have sparked a wave of market attention. However, whales are undeterred and are using the opportunity to accumulate over $3 billion in BTC.

Fidelity’s $103M Bitcoin Sale Leads ETF Outflows

Fidelity has liquidated 1,075 BTC, worth $103 million, amid the first ETF outflow in three days. The transaction took place on February 6, with the Fidelity Wise Origin Bitcoin Fund (FBTC) leading the sales. This was the second outflow recorded by the fund within a span of three days, which contributed significantly to the overall market movement.

The FBTC’s sale accounted for 73.6% of the total outflow among U.S. Bitcoin funds. The market saw a total liquidation of $140.3 million in BTC, where Grayscale Bitcoin Trust (GBTC) contributed the rest. GBTC sold 440 BTC, worth $42.21 million, on the same day, marking its continuous outflow trend.

Fidelity’s large sale follows BTC’s recent price correction, which saw the cryptocurrency dip nearly 3% from its daily high. However,other ETFs like BlackRock iShares Bitcoin Trust and ARK 21Shares Bitcoin Trust did not have any transactions. However, Grayscale Bitcoin Mini Trust saw an inflow of $5.15 million which contrasted with the broader trend.

Whales Continue BTC Accumulation 

Although ETF outflows have been evident, Bitcoin whales remain optimistic about the asset. Whales purchased more than 30,000 BTC in one week, which indicates confidence in its future price growth. Whales continue to capitalize on price dips and accumulate BTC despite short-term volatility.

On-chain data from CryptoQuant revealed a significant influx into BTC accumulation addresses. On February 4, addresses holding large amounts of Bitcoin, over 100 BTC, saw inflows of more than $3 billion. This large-scale purchases continues to suggest that institutions and large investors are bracing themselves for long-term gains.

The whale accumulation continues to dominate the broader market trend. Market intelligence firm Santiment also noted an increase in large-scale BTC accumulation. Their data indicates that whale addresses that hold at least 100 BTC increased by 135 in February which shows continued interest from large investors.

Whale Accumulation Signals Possible Future BTC Surge

The continuous accumulation by large holders has led to speculation that BTC may be preparing for an imminent rally. Historically, whale accumulation tends to precede bullish market movements. Although the market volatility remains prevalent, BTC price could experience upward momentum if this accumulation trend continues.

The price of BTC remains below the $100,000 mark, with recent value trading around $98,266. Although the cryptocurrency has faced some short-term pressure, whale activity suggests that the market may soon turn bullish.