Smart Money Shifts Bearish: BTC and Major Altcoins Face Institutional Selling Pressure

Institutional whales are dumping positions across crypto's blue-chip assets—BTC leading the decline as altcoins follow suit.

Market Dynamics Shift

Large wallets moved over $2.8B in Bitcoin to exchanges this week—classic distribution pattern. Ethereum, Solana, and other majors saw similar outflows. When smart money talks, retail should probably listen. Or ignore it completely—what do billion-dollar funds know about finance anyway?

Technical Breakdown

BTC dominance dropped 3.2% while total market cap bled $180B in seven days. Derivatives data shows leveraged longs getting liquidated at alarming rates. The 'buy the dip' crowd looks increasingly lonely out there.

Silver Linings?

History says crypto winters breed the next cycle's champions. Meanwhile, traditional finance continues charging 2% management fees for mediocre returns—some things never change.

Smart money is more bearish on SOL

The other major tokens with a focus on smart money are SOL and HYPE. The two tokens are a proxy for the crypto ecosystem in terms of retail activity, DEX trading, and perpetual futures DEX. 

Smart money is 93% short on SOL, while retail is even more bearish at 99% short. Whales are taking a risky bet with 59% long, counter to the general trend. The SOL sentiment based on Market Prophit data shows a similar disparity, with a more neutral attitude for retail and more bearish sentiment among smart money. 

$SOL Sentiment

CROWD = Bearish 🟥
MP = Bearish 🟥

Check out sentiment and other crypto stats at https://t.co/HQDyBNv73S pic.twitter.com/pmoec48Nqg

— Market Prophit (@MarketProphit) November 21, 2025

SOL sank to $125.24 after a brief recovery above $140. 

HYPE is an entirely different case, with 100% of retail interest making a long bet. Smart money is 66% short on HYPE, while whales hold a more conservative 52% in short positions. 

HYPE sank toward $32.81, though still supported by active trading and token burns. 

Short-term holders capitulate on BTC

BTC had one of its biggest short-term capitulations since the crash of FTX in 2022. Despite the positive developments for crypto this year, the price levels reached the pain points of short-term buyers. Based on Glassnode data, selling originated from short-term holders. 

$BTC realized losses have surged to levels last seen during the FTX collapse, with short-term holders driving the bulk of the capitulation. The scale and speed of these losses reflect a meaningful washout of marginal demand as recent buyers unwind into the drawdown.… pic.twitter.com/hAmZPOM5XZ

— glassnode (@glassnode) November 21, 2025

At $82,000, BTC sits close to some of its lowest support levels, pressuring even buyers from previous quarters to capitulate. During the latest downturn, only 64% of the BTC supply held is in profit, leading recent traders to absorb losses, rather than risk a deeper drawdown. The current supply in profit is at the lowest level since the 2023 bear market, after BTC drew in new buyers NEAR its peak prices. 

The recent selling follows a period of longer unwinding by long-term whales, as funds shifted to newer holders. The recent market downturn revealed the level at which spot BTC holders were ready to shed their coins, while they held through previous smaller downturns. 

The current market MOVE is testing the readiness of BTC owners to retain their coins, even if they risk another bear market. 

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