Solana Fee Surge, Whale Moves Spark Bitcoin Price Decline to $88K

TLDR

• Bitcoin dropped below $88,000 on January 25 following sharp activity on Solana and Binance.
• Solana network fees surged to $37.5 million on January 24, reflecting intense on-chain congestion.
• Whale wallets transferred around 2,000 BTC to Binance just days before Bitcoin’s decline.
• Analysts observed that similar Solana fee spikes previously occurred before major Bitcoin pullbacks.
• Ethereum dropped below $2,900, and Solana declined by over 2.5% during the same period.

Bitcoin price fell under $88,000 on January 25 after Solana fees surged and whales transferred BTC to Binance, suggesting potential pressure. Although neither factor confirmed a direct trigger, they coincided with Bitcoin’s sharp retreat and market-wide impact, with analysts linking these trends to prior corrections.

Solana Fees Spiked Sharply Before Bitcoin’s Drop

Solana network fees soared to $37.5 million on January 24, raising early alarms across the crypto market. The sudden increase resembled a similar fee surge seen on October 10, 2025.

At that time, Solana also recorded roughly $37 million in total fees. Bitcoin price then dropped over 25% in the following weeks.

Taha from on-chain analytics noted that these fee spikes reflect peak trading bot activity and high leverage use. He said, “While rising fees might seem bullish at first glance, Solana’s fee trends have often signaled upcoming BTC corrections.”

This latest fee rise occurred just one day before Bitcoin dropped under $88,000. The analyst added that these conditions often point to overheating across decentralized platforms.

Solana’s transaction activity reflected extreme congestion and leveraged trades. The rise in fees suggests intense decentralized finance participation, including by bots using automated arbitrage strategies.

Traders did not initially react to the Solana event. However, the same pattern in 2025 was followed by a sharp Bitcoin correction.

The timing of Solana’s fee peak and Bitcoin’s decline added to market concerns. As fees increased rapidly, risk appetite appeared to fade across leading tokens.

Whale Transfers to Binance Triggered Warnings

On January 21, large holders moved 2,000 BTC to Binance, drawing attention from market observers. This was just days before Bitcoin price dropped below $88,000.

Historically, such transfers have aligned with major selling periods or positioning by whales. Analysts tracked these movements through on-chain data platforms.

Bitcoin price began falling days after the whale activity. The timing aligned closely with the fee spike on Solana.

The move followed reduced open interest in the market. At $28.4 billion, derivatives data showed lower leverage than in late 2025.

Nonetheless, this transfer suggested traders were bracing for price adjustments. Long liquidations followed shortly after the BTC drop began.

Whales tend to use Binance for distribution due to liquidity. The 2,000 BTC movement added pressure to an already cautious market.

Bitcoin Price Drop Reflected Broader Risk Unwinding

Bitcoin touched $86,000 before settling under $88,000 during the past 24 hours. It dropped over 5% this week and nearly 17% year-to-date.

Ethereum slipped under $2,900 while Solana lost over 2.5% in the same period. Other altcoins such as Arbitrum, Cardano, Ethena, and Sui also declined.

XWIN Research Japan linked these moves to macroeconomic stress. They mentioned U.S. political tensions and a potential shutdown before January 30.

The firm cited thin liquidity as a compounding factor. “Nearly $170 million in long liquidations occurred within one hour,” their report noted.

These were driven largely by derivatives markets. Spot volumes stayed relatively stable despite high volatility.

While leverage had already declined before this move, the scale of liquidations suggested aggressive position unwinding. Open interest remains below historical highs.

The post Solana Fee Surge, Whale Moves Spark Bitcoin Price Decline to $88K appeared first on CoinCentral.