Crypto Quill

Bitcoin shocked traders Friday when it rocketed more than 11% in hours, climbing from a scary $60,000 low back to $70,623. The sudden bounce gave hope to millions of holders who watched the price crash over 50% from its all-time high. Yet fresh data shows big investors are still dumping coins fast, leaving many to ask if this rally will last.

Early Friday morning, Bitcoin hit $60,000 for the first time since October 2024. The drop wiped out billions in leveraged positions and pushed the Fear and Greed Index to a terrifying score of 9, the lowest level in over a year. Panic selling ruled the day until buyers stepped in hard during U.S. trading hours.

The rebound was sharp and fast. In less than six hours, the price shot up $10,000. Trading volume exploded past $70 billion in 24 hours, a clear sign that big money moved in both directions.

Whales and Sharks Now Hold the Smallest Share in Months

On-chain analytics firm Santiment released alarming numbers late Friday. Wallets holding between 10 and 10,000 BTC, known as sharks and whales, now control just 68.04% of the total supply. That marks a nine-month low.

These large holders have been selling or moving coins to exchanges at the fastest pace since early 2025. When this group shrinks its share, it often signals distribution rather than confidence.

• Shark and whale supply share: down to 68.04%
• Previous high this year: over 72%
• Drop started right after Bitcoin crossed $100,000 in October

Smaller retail wallets under 10 BTC have quietly scooped up coins during the dip. Their total holdings rose by more than 120,000 BTC in the past week alone.

Fear Hits Extreme Levels Not Seen Since 2023 Crash

The Crypto Fear and Greed Index fell to 9 on Friday morning. Scores below 20 count as “Extreme Fear.” The last time the index hit single digits was during the 2023 banking crisis when Bitcoin traded near $16,000.

History shows extreme fear often marks local bottoms. In every major case over the past five years, Bitcoin delivered strong gains in the weeks after the index dropped under 15. Still, past performance never guarantees future results.

What Sparked the Flash Crash and Quick Recovery

Several forces collided this week. Rising bond yields, hot inflation data, and worry about new U.S. capital gains tax rules pushed investors out of risk assets. Bitcoin led the sell-off, dragging the entire crypto market down more than 25% in days.

Friday’s bounce came after:

1. Liquidation of over $2 billion in long positions cleared weak hands
2. Spot buyers on exchanges like Coinbase and Binance stepped in heavily
3. Stock markets steadied after early losses

Many traders now watch the $68,000 level. A clean break above could target $78,000 fast. A fall back under $64,000 would renew bearish bets.

Can Retail Strength Beat Whale Selling Pressure?

Retail investors keep buying every dip this year. Data from Glassnode shows addresses with less than 1 BTC added coins for 18 straight weeks. That stubborn demand gives bulls real hope.

Yet whales control the short-term trend. If the current distribution wave ends, Bitcoin could blast higher. If they keep selling into strength, the path back to $60,000 stays open.

The fight between small holders who refuse to sell and large holders who keep cashing out has never been this clear. The next few days will show which side wins.

Bitcoin proved again that it can swing wildly in hours. The 11% surge Friday lifted spirits and saved many accounts from total wipeout. But the shrinking whale supply and record fear levels remind everyone that danger still lurks. One thing stays certain, this market never lacks drama.