Crypto Execs Weigh In on Bitcoin’s Drop Below $94K — Outflows, Whale Selling, and Geopolitics Blamed

The crypto market experienced one of its sharpest pullbacks of 2025 this weekend, with Bitcoin plunging to nearly $93,000 and the broader digital asset market shedding roughly $500 billion in value.

Bitcoin

BTC $95,140

briefly fell to $93,029, marking a new year-to-date low. Meanwhile, total crypto market capitalization dropped from $3.7 trillion on Nov. 11 to $3.2 trillion on Monday, according to CoinGecko.

Speaking to Cointelegraph, Ryan McMillin — chief investment officer at Merkle Tree Capital — said the decline isn’t the result of a single catalyst but rather a “stacking effect” of multiple pressures hitting the market simultaneously.

The crypto market capitalization has seen a steady pullback in the last seven days. Source: CoinGecko

What’s Dragging Prices Down? ETF Outflows, Whale Selling, and a Risk-Off Global Climate

McMillin pointed to blockchain data showing that long-term holders — some of whom held tokens for years — are “finally cashing in after an extraordinary run.” At the same time, liquidity conditions have thinned, leaving the market more vulnerable to sharp moves.

Spot Bitcoin ETFs, which were among the biggest accumulators earlier in the year, have now flipped to net outflows, coinciding with a broader risk-off environment and fading hopes of interest-rate cuts.

“Old coins are being distributed into a softer bid,” McMillin said. “And the macro environment is far less forgiving than it was six months ago.”

Matt Poblocki, general manager at Binance Australia and New Zealand, said the volatility underscores that crypto, despite its growth, is still a maturing asset class heavily shaped by global economic and political events.

Holger Arians, CEO of Banxa, added that markets are running “very hot” relative to the state of the world.

“We’re dealing with escalating geopolitical tensions while tech valuations continue rising on future expectations,” he noted. “A broader risk-off moment was almost inevitable after a year of optimism.”

Crypto executives on X also shared theories. Bitwise CEO Hunter Horsley suggested the four-year cycle narrative may have become self-fulfilling, spooking traders into selling prematurely.

Source: Hunter Horsley

Others, like BitMine chairman Tom Lee, believe that market makers with balance sheet vulnerabilities may have been targeted in forced-liquidation cascades — a scenario that historically amplifies downside volatility.

Is the Crash a Sign of Trouble—or Just a Normal Reset? Experts Say It’s the Latter

Despite the sharp correction, most analysts argue that the broader market remains structurally strong.

“These corrections are a normal part of a market cycle,” Poblocki said.

He added that retail investors haven’t exited the ecosystem. Instead, many are rotating into blue-chip assets like Bitcoin and Ethereum rather than fleeing risk entirely — an indicator of maturing investor behavior.

ETF flows have softened, but not enough to suggest panic. Institutional interest remains strong and broad-based.

Holger Arians also highlighted that fundamentals continue improving:

• clearer global regulation

• more real-world adoption

• increasing involvement from traditional finance

• deeper institutional liquidity

He noted that in past cycles, heavy selling from long-term holders often triggered 70–80% drawdowns. Today, the market is far more resilient.

“Despite very heavy OG distribution, prices are down far less because ETFs and institutional channels are absorbing a significant amount of supply,” Arians said. “That’s a sign of a more robust, maturing market — and part of the natural process of coins shifting from the few to the many.”

See all our insights: Bitcoin World news