World Liberty Financial Sells $6.71M WBTC Amid Extreme Fear Market

VADODARA, February 6, 2026 — World Liberty Financial (WLFI) executed a $6.71 million sale of 100 WBTC, according to on-chain data from Onchainlens. This daily crypto analysis reveals the firm has sold 173 WBTC worth approximately $11.75 million over the past 10 hours. Market structure suggests this institutional move coincides with a Crypto Fear & Greed Index reading of 12/100, indicating extreme fear.

Investigation: The WBTC Liquidation Event

Onchainlens data confirms WLFI's transaction of 100 WBTC. The sale occurred at an average price near $67,100 per Bitcoin. This brings the firm's total divestment to 173 WBTC within a compressed timeframe. Transaction timestamps show concentrated selling pressure during Asian and European trading hours. Market analysts attribute this to portfolio rebalancing amid heightened volatility. The move reflects a classic liquidity grab in a thin order book environment.

Market Context & Historical Precedent

Historically, institutional selling at extreme fear levels often precedes local bottoms. Similar to the Q2 2021 correction, large-scale WBTC redemptions signaled capitulation before a rally. In contrast, the 2023 bear market saw sustained selling pressure break key supports. Underlying this trend is the growing correlation between WBTC flows and Bitcoin ETF activity. The record volume in BlackRock's IBIT ETF contrasts with this sell-off, highlighting market fragmentation.

Related developments include US Senate crypto bill talks and Bill Miller's $60K bottom estimate facing market tests.

Technical Architecture & Price Action

Bitcoin currently trades at $62,871, down 14.08% in 24 hours. The price action invalidated the $67,000 support, creating a Fair Value Gap (FVG) between $64,500 and $66,200. Volume profile indicates weak buying interest at current levels. The 200-day moving average at $58,500 provides a critical macro support. Fibonacci retracement from the 2025 high shows the 0.618 level at $60,200 as a potential bounce zone. On-chain metrics from Glassnode reveal increased UTXO age bands moving to exchanges, signaling distribution.

By The Numbers

Why It Matters

This event matters for portfolio allocation over a 5-year horizon. Institutional selling during extreme fear often marks sentiment extremes. Market structure suggests WLFI's move may trigger stop-loss cascades if $60,000 breaks. The WBTC redemption pressure impacts Bitcoin's liquid supply, potentially easing sell-side pressure post-distribution. According to Ethereum's official documentation, WBTC relies on a custodial model, making large redemptions a proxy for institutional liquidity cycles. Retail market structure appears fragile, with recent drops below $67,000 exacerbating fear.

Expert Commentary

"The concentrated WBTC selling at extreme fear levels resembles the March 2020 liquidity crisis pattern. Market analysts view this as a necessary cleansing of weak hands before a structural rally. However, a break below the $60,000 invalidation level would signal deeper correction risks." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure.

• Bullish Invalidation Level: $67,000. A daily close above this resistance confirms a trend reversal, filling the FVG and targeting $72,000.
• Bearish Invalidation Level: $60,000. A break below this psychological support invalidates the bullish structure, opening a path to $58,500 (200-day MA).

The 12-month institutional outlook hinges on macroeconomic factors like Federal Reserve policy. Historical cycles suggest extreme fear readings often precede 30-50% rallies within 6 months. However, sustained selling pressure could extend the consolidation phase into Q2 2026.