BTC Drops to Two-Month Low as Whale Reenters After Previous Loss

• Bitcoin fell to $66K as profitability weakened and realized losses increased, Glassnode said.
• The firm said BTC is trading below the ETF cost basis, while options are still priced at elevated risk.
• Lookonchain tracked a whale buying 401 BTC worth $26.86 million at an average price of $66,957.

Bitcoin has slipped toward the $66,000 area as on-chain data shows sellers regaining control and traders reassessing risk after a failed recovery attempt. Glassnode described the move as “the rally that wasn’t,” pointing to weaker profitability, rising realized losses, and pressure below the ETF cost basis.

At the same time, wallet activity showed at least one large buyer returning near current levels. Lookonchain reported that a whale bought 401 BTC worth $26.86 million at an average price of $66,957, despite previously losing more than $2.5 million from buying high and selling lower.

Glassnode Flags Weak Recovery

Glassnode said Bitcoin’s move down to $66,000 came with profitability collapsing and realized losses rising. That means more holders are moving coins at a loss compared with earlier stages of the cycle.

The firm also said spot sellers have regained control. This matters since spot selling can place direct pressure on price, unlike derivatives activity that may unwind quickly through liquidations or funding changes.

Source: X

Another key point from Glassnode was Bitcoin’s position below the ETF cost basis. That level can become important when recent ETF-linked buyers move into unrealized losses, especially during periods of weaker market confidence.

Options data also remains cautious. Glassnode said options continue to be priced at elevated risk, showing that traders still expect volatility after the latest decline.

Related: BTC Exchange Inflows Surge as BTC Short-Term Holders Hit Worst Capitulation 

Whale Returns Near $66K

Lookonchain reported that a whale bought 401 BTC for $26.86 million at an average price of $66,957. The transfer data showed several large inflows, including 210.815 BTC, 91.264 BTC, 55.951 BTC, and 43.189 BTC.

The same whale previously bought 81 BTC at an average price of $95,423 on Jan. 16 before selling on Feb. 23 at $64,243. That earlier trade resulted in a loss of more than $2.5 million.

Source: X

This new purchase places the wallet back in Bitcoin after the market dropped near two-month lows. However, the transaction only shows renewed accumulation by one whale and does not confirm broader market demand.

CoinGecko chart data in the shared image placed Bitcoin near $66,720.75, down 36.7% over one year. The 24-hour range stood between $65,707.79 and $68,508.66, showing price remains under pressure but still above the day’s low.

Related: Bitcoin Whales Dump $1.65B as Schiff Predicts a Fall Below $20K

Analysts Watch Lag Against Stocks

VirtualBacon said Bitcoin trading at a two-month low while stocks print records is not necessarily a bear signal. He argued that Bitcoin has historically lagged equities at times before later outperforming.

He also said Bitcoin can overshoot both ways, moving further than expected during rallies and deeper than feels sustainable during declines. That comment frames the current move as part of Bitcoin’s wider volatility pattern rather than a clean trend signal.

Even so, the latest chart structure remains weak. Bitcoin has failed to hold the stronger recovery zone, while on-chain losses, ETF cost-basis pressure, and cautious options positioning show stress inside the market.

For now, the key issue is whether buyers can defend the $65,700 to $66,000 area. A stronger recovery would need the price to reclaim the upper part of the 24-hour range near $68,500, while another break lower would keep realized losses and seller control in focus.