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Key Takeaways:
- Realized Bitcoin profits spiked to $8B, signaling a local top.
- “New whales” drove the third major profit-taking wave of this bull run.
- Despite a $9.7B sell-off from an old whale, BTC quickly rebounded.
Bitcoin’s recent failure to hold above the $120,000 mark has ignited what analysts are calling the “third major profit-taking wave” of the ongoing bull cycle. According to on-chain data from CryptoQuant, realized profits surged to between $6 billion and $8 billion in late July — levels historically linked to local market tops.
New Whales Lead the Liquidation
Unlike earlier phases led by early adopters, this latest wave was fueled by “new whales” — entities that recently accumulated large BTC holdings, often linked to institutional investors or corporate treasuries. These players began offloading once Bitcoin breached $120,000, locking in substantial gains as the market cooled slightly.
This mirrors previous cycles, including profit-taking episodes following the approval of US spot Bitcoin ETFs and the anticipation of President Trump’s 2024 inauguration. Both events were followed by market slowdowns, with the latter accelerating into a sell-off amid geopolitical tensions and economic uncertainty.
Dormant Whales Reawaken
Adding to the selling pressure, a long-inactive Bitcoin wallet tied to the early Satoshi Nakamoto era liquidated 80,000 BTC — realizing nearly $9.7 billion. The sales, executed via Galaxy Digital across exchanges like Binance, Coinbase, and Bitstamp, briefly pushed Bitcoin’s price down 4%. However, the market quickly rebounded, highlighting robust buyer demand.
Also Read: US Bitcoin Reserve Plan Still Active Despite Report Silence, Confirms White House Advisor
Market Shows Strength Despite Sell-Offs
Despite these large-scale profit realizations, Bitcoin remains resilient. After briefly dipping, BTC recovered swiftly and continues to trade near its all-time high of $123,000. On a relative basis, Bitcoin has outperformed traditional assets like the S&P 500, which has fallen 15% year-to-date when priced in BTC.
This reinforces the narrative of Bitcoin’s growing maturity and ability to absorb volatility, even amid aggressive institutional activity.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m the cryptocurrency guy who loves breaking down blockchain complexity into bite-sized nuggets anyone can digest. After spending 5+ years analyzing this space, I’ve got a knack for disentangling crypto conundrums and financial markets.
