Investor optimism has just broken through its highest point since 2021, prompting Bank of America to immediately issue a sell signal for stocks and other risk assets. The warning comes as the Chinese Yuan (CNY) exchange rate surged to its strongest position against the US dollar in over three years.
These tense macro conditions align with a crypto regulatory deadlock in Washington. White House official Patrick Witt stated that the Democratic faction is deliberately blocking the vote on the Clarity Act before the summer recess. “If they can’t get there before September 15, they never will,” Witt said, closing any window of hope for rules that would support the market in the near future.
Two Directions of Whale Money
Amid sell warnings from traditional institutions, large-scale players are responding with opposing moves. On-chain data from tracker Lookonchain shows that a whale recently opened a 20x long position for 500,000 SOL worth $22.78 million using a fresh wallet. So far, the unidentified entity has deposited 199,838 SOL worth $15.2 million to support the position.
However, the bold bet on Solana did not spread to Ethereum. A long-time player with wallet address 0x7C5a finally capitulated after holding ETH for over three years. The investor sold 7,323 ETH worth $13.96 million, incurring a loss of over $19 million. The assets were purchased at an average price of $2,723 between February 2022 and March 2023.
Supply pressure is also coming from other projects. HyperLabs recently unlocked 433,025 HYPE worth $23.46 million and has been gradually depositing them to Flowdesk and OKX, signaling preparation to sell. At the same time, an entity suspected to be a whale or miner has moved 6,494 BTC worth $420.5 million to Binance over the last three weeks.
How Deep Can the Price Fall?
These flows of hundreds of millions of dollars have divided analyst opinions on the fate of Bitcoin. Nansen founder Alex Svanevik believes Bitcoin’s role as a hedge against central bank money printing is strengthening. “I personally don’t believe Bitcoin will ever go below $60,000 again - that’s in the past, forever,” he wrote.
Svanevik’s view clashes with crypto veteran Michael Terpin. According to Terpin, Bitcoin still has room to fall to the $40,000 range. That figure represents a 66% decline from its all-time high of $126,100, which was recorded in October 2025.
As macro indicators flash red and whales are both dumping and accumulating massive amounts of assets, retail investors have few choices left. Following one side of the institutional market now demands extra caution, as the big players themselves appear to be sitting on opposite sides of the table.
Reported by @WatcherGuru on X.
Also read: How to Read Candlesticks for Beginners
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
