Owen Gunden’s total Bitcoin sell-off has marked a recent negative milestone, as this renowned early investor completely liquidated his position in the market. According to records tracked and published by the data platform Arkham, the identified portfolio transferred its last assets to a centralized exchange this Thursday. Thus, this action highlights the sharp contrast between retail panic and institutional firmness currently observed in the ecosystem, generating debates about the future direction of the leading asset’s price.
On-chain data reveals that the wallet tagged as Gunden sent his last 2,499 BTC, valued at $228 million, to the Kraken platform recently. In total, he disposed of 11,000 Bitcoin worth approximately $1.3 billion since his movements began on October 21. Therefore, this maneuver represents the complete exit of one of the pioneers of crypto arbitrage, who operated on the old Mt. Gox blockchain, accumulating his initial fortune through complex trading strategies during the sector’s last operational decade.
This event occurs at a delicate moment, characterized by a prevailing bearish sentiment among retail investors who fear the end of the current bull cycle. On the other hand, technical indicators like CryptoQuant’s Bull Score Index have dropped to critical “extreme bearish” levels, intensifying general uncertainty. However, the exit of large private capital is usually interpreted as an early warning sign, suggesting that some ecosystem veterans prefer to secure historic profits given the technical possibility of a much deeper correction in the short term.
Are institutions taking advantage of fear to accumulate more?
Despite the notable flight of individual capital, the institutional landscape shows a diametrically opposite trend of aggressive accumulation in exchange-traded funds. The market analyst known as Root pointed out on social network X that institutional ownership of Bitcoin ETFs has recently climbed to 40%. This marks a significant increase from the 27% recorded in the second quarter, based on 13-F filings with the SEC. Likewise, this suggests that large financial firms are effectively absorbing the supply that weak hands are releasing.
The current scenario poses a clear divergence between the capitulation of historical investors and the sustained entry of regulated corporate capital in the United States. While prominent figures like Gunden withdraw from the board, entities with over $100 million under management keep their positions firm. Finally, the price future will depend on whether institutional demand manages to counter selling pressure, thus defining the next critical phase of the market cycle in an environment of high volatility and mixed expectations.
