Bitcoin fell below the $90,000 threshold in early January 2026 after roughly $4.4 billion of whale selling flooded the market, according to market data reviewed for this report. The scale of those sales overwhelmed buying demand and amplified volatility around the key level.
The $4.4 billion in large-holder selling occurred in early January 2026 and acted as the immediate driver of downward pressure. Bitcoin market participants noted that such outsized transactions can trigger cascading liquidations of leveraged positions, intensifying downside momentum and thinning order-book depth at higher price bands.
“The sheer volume of these sales can overwhelm even robust buying interest,” analysts said, summarizing how the sales interacted with prevailing liquidity conditions.
That concentrated selling coincided with institutional outflows, broader macroeconomic headwinds and lingering concerns about long‑term cryptographic risks, leaving the market unable to sustain gains above $90,000.
Institutional flows, macro forces and security concerns
Institutional channels added to selling pressure: recent outflows from spot crypto ETFs fed additional sell-side supply, according to the same dataset. At the same time, global macro uncertainty nudged risk appetite lower, prompting some allocators to reduce exposure to higher‑volatility assets.
The combination of these factors created a reinforcing loop: large sales reduced liquidity, which amplified price moves and encouraged further selling from both leveraged traders and long holders trimming positions.
Investors will now watch institutional flows and on‑chain indicators to judge whether selling has truly abated or if further liquidation events and ETF redemptions will prolong downward pressure.
The near-term test for market stability will be whether buying interest reappears at levels below $90,000 and whether institutional redemptions slow in the coming sessions.
