How panicked is the crypto world? Even the "first-generation whales" are fleeing—Owen Gunden liquidated $1.3 billion worth of Bitcoin holdings in one month.

```

At a time when retail investors are panic selling, early Bitcoin holder Owen Gunden liquidated his entire Bitcoin position worth around $1.3 billion within a month, while the institutional investors’ share of Bitcoin ETF holdings rose to a new high of 40%.

On Thursday, the Owen Gunden wallet tagged by blockchain data platform Arkham transferred the last 2,499 Bitcoins, worth $228 million, to the cryptocurrency exchange Kraken. Since October 21, the wallet has sold about 11,000 Bitcoins in total, completely clearing out its holdings.

This sell-off occurred amid extremely bearish market sentiment. According to CryptoQuant data, the state of the Bitcoin market has deteriorated to the “most pessimistic” level in this cycle, with its bull market index dropping to an extremely bearish range of 20/100. So far in November, Bitcoin ETFs have seen $2.8 billion in outflows.

In stark contrast, institutional investors are continuously increasing their positions. The latest 13-F filings show that despite spreading panic among retail investors, institutions’ share of U.S. spot Bitcoin ETFs has risen to 40%, up from 27% in the second quarter of 2024.

"Original Whale" Completes Liquidation

Owen Gunden is one of the wealthiest early Bitcoin holders. According to Arkham’s crypto rich list, his net worth is about $561 million, ranking eighth in the crypto space.

Gunden was an early Bitcoin arbitrage trader, active on exchanges like Tradehill and the now-defunct Mt. Gox. Before Mt. Gox ceased operations in 2014, he traded tens of thousands of Bitcoins on the platform, thereby accumulating wealth on-chain.

The liquidation began on October 21 and lasted for over a month. After the last transfer, this “original whale” reduced his Bitcoin holdings to zero.

Institutions Build Positions Against the Trend

While retail investors are panic selling, institutional investors continue to increase their holdings. Bitcoin analyst Root stated on social platform X that on Wednesday, the institutional ownership of Bitcoin ETFs reached 40%, significantly up from 27% in the second quarter of 2024. At that time, around 1,119 institutions held investments through U.S. spot Bitcoin ETFs.

Root pointed out that the 40% figure is a "conservative estimate" since only institutions managing over $100 million in assets are required to submit 13-F reports to the U.S. Securities and Exchange Commission.

According to Farside Investors data, despite a $2.8 billion outflow from Bitcoin ETFs since November, the rising institutional share indicates that institutional investors are holding firm.

Market Sentiment Drops to Cycle Low

As Cointelegraph previously reported, CryptoQuant’s bull market index has dropped to 20/100, an extremely bearish level, marking the most pessimistic moment in the Bitcoin market this cycle.

Concerns about the end of the bull market are mounting, causing retail investors to exit the market in droves. This sentiment stands in sharp contrast to the behavior of institutional investors, who have continued increasing their proportion of spot Bitcoin ETF holdings amid market panic.

Bitcoin is currently priced at about $85,823. The divergence between institutions and retail investors highlights the confidence gap among current market participants.

Risk Warning and DisclaimerMarkets are risky, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account any individual user's specific investment objectives, financial situation, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article apply to their specific circumstances. Investment is at your own risk. ```