Lacey Schunter Opmz

Bitcoin has now suffered its third 30%+ correction of the current cycle — but unlike previous downturns, Bitcoin dominance fell instead of rising, signaling that the largest cryptocurrency was hit harder than the broader market during the sell-off.BTC plunged to the $80,000 region late last week, marking a 36% drawdown from its October all-time high above $126,000. While widespread deleveraging gripped the crypto market, alternative cryptocurrencies showed unusual resilience relative to Bitcoin, directly impacting the dominance metric.Dominance Behavior Flips: Instead of Rising, BTC Share of the Market FellHistorically, Bitcoin dominance climbs sharply during market-wide risk-off events, as traders rotate out of altcoins and into BTC or stablecoins. That pattern held earlier in the year — until now.What typically happens:February–May “tariff tantrum” correction: Dominance surged from 58% to 65%2024 yen carry-trade unwind: Dominance climbed from 56% to 60%What happened this time:As Bitcoin fell from October highs to $80,000, dominance dropped from 61% to 58.5%Even after recovering above $90,000, dominance has only rebounded to just over 59%This is the opposite of how dominance usually behaves in a deep BTC correction.The takeaway:Bitcoin underperformed the broader crypto market during this decline — a rare break from established cycle behavior.A Faster, Sharper Bitcoin Drawdown Than Previous CyclesSpeed was another defining characteristic of this correction.The current drawdown lasted 47 days from peak to troughThe February–May “tariff tantrum” lasted 77 daysThe 2024 yen-driven correction stretched 146 daysThe unusually rapid decline amplified fear and contributed to atypical investor behavior, including capital rotating into selected altcoins and stablecoins rather than consolidating into Bitcoin.Why this matters heading into the cycle’s next phaseThis cycle's third major correction deviates from the first two in two key ways:Bitcoin dominance fell when it historically risesThe decline happened significantly faster than previous resetsThese factors raise a critical question for investors as Bitcoin approaches the tail end of its four-year cycle:Does falling dominance signal deeper structural weakness, or is it a temporary anomaly tied to leverage washouts and ETF-driven flows?With Bitcoin stabilizing above $90,000 and dominance only partially recovering, market participants are watching closely to determine whether this cycle’s pattern truly breaks — or whether BTC reasserts its position as macro conditions normalize.

One of Bitcoin’s earliest and wealthiest holders has liquidated his entire BTC stack, even as institutional ownership of U.S. spot Bitcoin ETFs climbs to record highs amid a deteriorating market backdrop.Blockchain data from Arkham Intelligence shows that Bitcoin OG Owen Gunden — once among the eight richest individuals in crypto — has sold his full 11,000 BTC holdings (worth roughly $1.3 billion) since Oct. 21. His final transfer of 2,499 BTC, valued at $228 million, was sent to Kraken on Thursday.The move comes during one of Bitcoin’s most bearish stretches of the current cycle, as retail panic deepens and major wallets reduce exposure.Key TakeawaysEarly Bitcoin whale Owen Gunden sold 11,000 BTC (~$1.3B) since Oct. 21, fully liquidating his holdings.Final tranche: 2,499 BTC (~$228M) sent to Kraken on Thursday.Bitcoin market sentiment has hit “extreme bearish”—Bull Score Index at 20/100.Despite fear-driven selling, institutional ownership of U.S. Bitcoin ETFs has surged to 40%.BTC is trading near $86,444, down sharply from its recent highs.Gunden Liquidates Entire Bitcoin FortuneGunden’s liquidation marks one of the largest individual BTC sell-offs of 2025.According to Arkham:11,000 BTC sold since late October~$1.3B total realized valueFinal 2,499 BTC transferred to Kraken for liquidationWallet now fully emptiedGunden rose to prominence during Bitcoin’s earliest era, operating as an arbitrage trader across exchanges including Tradehill and the now-fallen Mt. Gox. He accumulated tens of thousands of BTC through high-volume trading between 2011 and 2014, establishing himself as one of the most influential early adopters.Arkham still ranks him among the world’s wealthiest crypto figures with an estimated net worth of $561 million, though now no longer holding Bitcoin. Market Fear Accelerates as Bull Score Hits Extreme LowsGunden’s exit coincides with one of the sharpest downturns in market sentiment this cycle.According to CryptoQuant’s Bull Score Index:Score has fallen to 20/100,Categorized as “extreme bearish”,The lowest level of Bitcoin’s 2025 market structure.Analysts say this reflects:Declining whale confidenceBroad risk-off positioningRising concerns that the 2025 bull market may have endedBitcoin is currently trading at $86,444, more than 30% below its October peak of ~$126,000.Institutions Quietly Tighten Control of Bitcoin ETFsDespite panic among retail traders and billions in ETF outflows, institutions are steadily increasing their ownership share of U.S. spot Bitcoin ETFs.According to Bitcoin analyst Root:Institutional ownership hit 40% on Wednesday,up from 27% in Q2 2024,based on the latest 13-F filings.Root noted that this figure is conservative because:Only firms with >$100M AUM are required to fileMany smaller institutional buyers go unreportedThis suggests actual institutional penetration may be significantly higher.Institutions Are Holding While Retail SellsDespite:$2.8 billion in outflows from U.S. spot Bitcoin ETFs in November (Farside Investors)Retail panic and short-term capitulationinstitutions appear to be holding their positions, reducing the likelihood of systemic forced selling from large professional funds.The Big PictureWhile mega-whale Owen Gunden has fully exited Bitcoin after more than a decade, institutional players now hold a record 40% of spot BTC ETF supply — a structural shift that suggests long-horizon investors are accumulating even as retail sentiment collapses.Market analysts say Bitcoin may still face volatility as bearish momentum persists, but institutional inflows and ownership concentration indicate the ecosystem is becoming increasingly dominated by professional capital rather than early adopters.