Allegations of Coordinated Bitcoin Divestment Emerge
Recent market movements are attributed to an alleged coordinated sell-off of over $4.5 billion in $BTC by several major entities. Reportedly, entities involved include prominent cryptocurrency exchange Binance, trading firm Wintermute, U.S. exchange Coinbase, asset management giant BlackRock, and an individual referred to as a "Trump insider." This alleged divestment allegedly directly caused a market downturn, with $BTC trading at $65,463.00, reflecting a 3.2% decline over 24 hours and a 3.7% decrease over the past seven days.
Specific Alleged Divestments and Market Impact
An oldest Bitcoin whale, active since 2009, liquidated $1.24 billion in $BTC. Further institutional divestment was observed as Spot $BTC Exchange Traded Funds (ETFs) collectively reduced their total holdings by 100,300 $BTC amid market outflows. Public companies also collectively reduced their $BTC holdings by 58 $BTC during the week of February 16–February 22, 2026. Another transaction involved a whale (address bc1q9c) depositing 650.76 $BTC, valued at approximately $43.05 million, into the Gemini exchange after three years of inactivity, realizing a $25.37 million profit.
The $BTC/Gold weekly Relative Strength Index (RSI) reached its lowest level ever recorded, surpassing lows seen during the FTX crash, the 2020 crash, and the 2018 crash – a historical pattern often preceding significant market shifts. The Bitcoin Coinbase Premium Gap remained negative. The rate difference between Bitcoin’s market capitalization and its realized capitalization was consistent with a bear market environment. Polymarket odds for $BTC falling below $55,000 soared to 72%.
Contrasting Data and Political Connections
The alleged "Trump insider" connection points to Eric Trump, a co-founder of World Liberty Financial, who was linked to an incident where the stablecoin $USD1 briefly depegged to $0.98 on Binance. This followed an alleged coordinated attack involving hacked co-founder accounts and large short positions on $WLFI. Eric Trump reportedly deleted a retweet related to World Liberty Financial's official announcements, and $WLFI briefly dropped over 8%. However, direct evidence of Eric Trump selling $BTC as part of the $4.5 billion allegation was not provided.
Conversely, Binance, one of the implicated entities, showed contrasting activity. Bitcoin reserves on Binance have climbed to their highest level since November 2024, according to on-chain analytics.
Current Market Posture and Regulatory Interest
Since the initial sell-off, $BTC has established three lower highs on its daily chart. A counter-trend rally attempt was followed by a lower low after the $65,000 level was invalidated as a range bottom.
Meanwhile, Missouri is advancing a bill (HB 2080) that would permit the state treasurer to purchase and hold $BTC as part of state reserves. The proposal allows for $BTC to be held for up to five years under specific conditions.