Bitcoin Market Withstands Whale Liquidation as Profit-Taking Grows

Bitcoin Market Withstands Whale Liquidation as Profit-Taking Grows

Santiment: Falling Holding Time Signals Healthy Market Activity

As Bitcoin’s price dips below $105,000, on-chain data suggests that the market may still be in strong shape—even as investors take profits and whales absorb massive losses.

New analysis from Santiment, released in its May 29 Biweekly Report, suggests that despite a 10% correction in BTC/USD, the current behavior of market participants is consistent with healthy market cycles, not the end of the rally.

One of the key indicators used is the Mean Dollar-Invested Age (MDIA), which measures how long Bitcoin stays in wallets without moving. A falling MDIA typically reflects a reactivation of older coins, which can support network utility and growth.

“During most bull cycles, a falling MDIA… is a great validator that bullish momentum will continue,” Santiment wrote.
“Old coins are being brought back into circulation, allowing utility to rise.”

Since mid-April, MDIA has steadily dropped, with the average holding period decreasing to 426 days from 443 days. According to Santiment, this modest decline shows that holders are cashing in, not retreating—and that this profit-taking may actually help sustain the rally.

Massive Liquidation Hits James Wynn of Hyperliquid

While many investors took profits during this retracement, not everyone emerged unscathed.

James Wynn, a prominent figure from the decentralized trading platform Hyperliquid, saw a $99 million long position liquidated when Bitcoin slipped below the $105,000 threshold.

“When major longs get liquidated, prices typically move down sharply because the major capital is no longer propping up price,” Santiment warned—just before Wynn’s position was wiped out.

This liquidation underscores the risks even for well-known whales when volatility strikes. The market’s reaction, however, has remained relatively stable, with analysts calling the drop a “healthy” support retest rather than a trend reversal.

Meanwhile, large amounts of BTC continue to move off exchanges, including a 7,000 BTC transfer on May 30, suggesting continued accumulation by large holders.

Conclusion: The Bull Market Still Has Legs

Despite high-profile losses and a double-digit price pullback, bullish sentiment remains intact. The market is displaying behavior typical of sustainable growth, not short-term speculation, and even setbacks like Wynn’s liquidation haven’t cracked investor confidence.

As Santiment concludes, “This adds weight to the argument that the market is in an active phase.”