Bitcoin has fallen more than 30% from its all-time high of $126,000 and is trading around $85,500 after briefly falling to $82,000, according to market reports. Traders warn that recent decisions by long-term holders are changing how the market responds to stress. Liquidity has dwindled, making price fluctuations larger than usual.
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Schiff issues stern warning
According to gold investor Peter Schiff, Bitcoin is “finally having its IPO moment.” He said when veteran holders turn into sellers, supply at the top of the market increases and future selling can become deeper.
“Such a large amount of Bitcoin moving from strong to weak hands not only increases float, but also means that future sales will be greater,” Schiff said on Saturday.
His view has been repeated by bearish voices for years, but this time the commentary is opposed to clear on-chain moves and large ETF outflows.
Traders note that when confident, long-term holders reduce their positions near local highs; when several do it at the same time, the price movement often becomes more violent.
Some argue that after all these years, Bitcoin is finally having its IPO moment now that there is enough liquidity for the OGs to cash out. I agree, but so much Bitcoin moving from strong to weak hands not only increases float, but also means future sales will be greater.
-Peter Schiff (@PeterSchiff) November 22, 2025
Whale movements and major sales
According to reports, whales and early wallets moved over 400,000 BTC in October, activity linked to heavy selling pressure. One early investor, Owen Gunden, reportedly liquidated his entire 11,000 BTC stake in October and November.
High-profile figures also sold: Robert Kiyosaki announced a sale worth around $2.25 million, saying he bought when BTC was around $6,000 and sold for almost $90,000, and that he planned to redeploy the proceeds from the sale into income-generating activities.
Bitfinex analysts point to two key factors in the recent decline: sales by long-term holders and leveraged liquidations in derivatives markets. When margin positions unwind, prices can fall before the market finds support.
ETF Flows and Retail Sentiment
According to Bloomberg and fund filings, investors withdrew nearly $1 billion from Bitcoin ETFs in a single session, the second-largest daily outflow among the group of 12 funds.
BlackRock’s IBIT led with $355 million, while Grayscale’s GBTC and Fidelity’s FBTC each saw about $200 million disappear.
Over the past month, ETF products have seen net outflows of approximately $4 billion. Figures from Citi Research cited by market observers estimate that each billion dollars withdrawn represents a negative change of around 3.4% in the price of Bitcoin.
There has been a reverse movement, however: reports show that ETFs saw inflows of $238 million yesterday, highlighting how quickly flows can reverse.
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Schiff’s warning shows that Bitcoin can still be shaken when large holders sell. Even if some institutions are buying, the transfer of coins from long-term owners to casual investors could lead to larger and faster future price declines.
People who watch the market will likely pay close attention to what these veteran holders do, because their actions could decide the size of the next crash.
Featured image from Born Free Foundation, chart from TradingView
