Bitcoin’s Battle Below $116,000: Can Wall Street’s Deep Pockets Spark The Comeback?

Bitcoin hits turbulence below the $116K threshold—institutional whales now hold the keys to recovery.

The Institutional Gambit

Wall Street's latest plaything faces its first real stress test since going mainstream. BlackRock, Fidelity, and their ilk poured billions when Bitcoin was fashionable—now they're either doubling down or cutting losses like traditional finance always does.

Market Mechanics Exposed

No fancy algorithms or lunar cycles explain this dip—just classic profit-taking meets macroeconomic jitters. The so-called 'smart money' bought the rumor of ETF approvals; now they're selling the news of actual adoption.

The Cynic's Corner

Remember when institutions promised 'price stability'? So much for that fairy tale—turns out even billion-dollar funds can't resist panic-selling when charts flash red. Some things never change, even when the asset does.

Bottom Line: Bitcoin doesn't need salvation—it needs conviction. And if history's any guide, the institutions late to this party will be early to the next crash.

• Bitcoin drops below $116,000, influenced by rising geopolitical tensions and cautious market sentiment.
• Despite the price decline, treasury firms like Metaplanet continue to accumulate Bitcoin, signaling institutional confidence.
• Short-term holders are realizing losses as Bitcoin faces strong resistance, with potential for either a healthy reset or prolonged correction.

Bitcoin (BTC) fell below $116,000 and decreased almost 6.80% from its all-time high of $124,474. This decline is due to increased geopolitical tensions that are causing markets to become more cautious. 

Source: CoinMarketCap

The most significant factor is a statement from U.S. President Donald TRUMP regarding the organization of trilateral negotiations between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy. 

Such news is causing confusion in the large treasury houses, such as Metaplanet and Strategy, which are taking the lead in response to the declining price of BTC. These investors are keeping on increasing their BTC, and the actual recession is viewed as an opportunity to increase their BTC. 

Short-Term Bitcoin Holders Face Uncertainty

Short-term Bitcoin buyers, also known as short-run holders (STHs), are experiencing significant stress. In January 2025, a significant correction occurred, ending the previous 7 straight months of losses in STHs.

Source: CryptoQuant

Ever since, the market of BTC has revived to a major extent. Short-term investors have continued to make profitable trades as bitcoin approaches the $100,000 mark. However, short-term investors are currently experiencing losses again, and the STH-SOPR multiples have fallen below 1.

This change of action has created an uneasiness about the immediate future of BTC. In the past, the STH-SOPR ratio drop may have indicated two things: To start with, it may indicate a cooling intensity, as recognition of losses usually comes before the market correction. Second, it could be a healthy wash-out in which weak hands have been washed out to FORM the basis of a sustainable rally.

Bitcoin is now experiencing strong resistance at an all-time high. The market strength is tested by this loss-realization event. This may lead to a recovery if the market quickly absorbs the losses, similar to past instances when Bitcoin rebounded with gains after a brief downturn. In contrast, if the selling pressure continues, a further correction of BTC may take longer to occur.

Long-Term BTC Holders Stay Calm Amid Market Uncertainty

On the part of the long-term holders (LTHs), the statistics are more optimistic. According to CryptoQuant LTH Realized Profit and Loss metrics, there is a moderate rate of profit realization by long-term holders. They are not as active and aggressive as in prior bull markets, such as in 2017 and 2021. This implies that even though BTC is currently trading NEAR record highs, long-term holders are not experiencing any selling pressure.

Source: CryptoQuant

Institutional investors, however, are concerned. SoSoValue has provided evidence that the institutional outflows continued for an additional day. The institutional confidence might be dwindling, as on Monday, the market lost $121.81 million. In case these outflows persist, the situation might exert more pressure on the BTC price.

Source: SoSo Value

Geopolitical events and immediate losses for investors are keeping the price of Bitcoin under pressure. Nonetheless, key treasury institutions still make purchases at depressed prices, and long-term holders exhibit moderate selling.

The market is at a critical stage, with the reaction of both short-term and long-term holders being the one that will either allow Bitcoin to escape its upward trend or not. Or cause it to experience further corrections in the short run.