The movements of major investors in the virtual asset market are once again attracting attention. World Liberty Financial (WLFI) has reportedly reduced its Bitcoin exposure by selling a large amount of WBTC within a short period of time.
According to the on-chain data platform OnChainLens, WLFI sold an additional 100 WBTC, cashing out approximately $6.71 million. This brings the total liquidation of WLFI to 173 WBTC, worth approximately $11.75 million, over the past 10 hours.
WBTC is a representative wrapped asset that is backed 1:1 by Bitcoin and can be used on other blockchains like Ethereum. Because it's widely used in the DeFi ecosystem and institutional fund management, selling WBTC is effectively interpreted as reducing Bitcoin holdings.
This selloff is likely more than a simple profit-taking exercise; it's a strategic adjustment for risk management purposes. This is because, with recent Bitcoin price volatility increasing and ETF fund inflows and outflows stagnating, it appears as if major players are increasing their cash holdings first.
It's particularly noteworthy that the selloffs occurred consecutively within a short period of just 10 hours. This could be seen as a swift liquidation of positions in light of market liquidity, but it could also be a defensive move to guard against the possibility of further declines.
The market is on edge as to where WLFI will reallocate its secured funds. Various scenarios are being discussed, including conversion to stablecoins, acquisition of other digital assets, or a shift toward RWA (real-world asset tokenization).
As Bitcoin prices search for direction, a chain of selling by "whales" could impact short-term sentiment. It remains to be seen whether preemptive moves by large funds will signal the next market turning point.
