Recent reports from CryptoQuant reveal that long-term Bitcoin (BTC) whales have seized an opportune moment to offload $1.2 billion in profits over the past fortnight. These seasoned investors, dubbed “old whales,” capitalized on the surging BTC prices to sell coins acquired at significantly lower values, marking an unprecedented period of profit-taking in USD terms.
Julio Moreno, CryptoQuant’s Head of Research, emphasized the significance of this profit realization, comparing it to a similar event in April 2022 when Bitcoin was priced at $40,000. During that instance, whales cashed in $683 million in profits in a single day, equivalent to 17,000 BTC. In contrast, the recent two-week span witnessed profit-taking on 14,000 BTC, albeit with a considerably higher USD valuation.
Bitcoin whales, often institutional entities holding at least 1,000 BTC (currently valued around $65 million each), are speculated to have executed many of these transactions through brokers. This methodical approach suggests that the broader market has yet to fully experience the repercussions of these sell-offs. CryptoQuant CEO Ki Young Ju cautioned that brokers might deposit BTC onto exchanges, potentially impacting market liquidity and prices.
These developments unfold against a backdrop of bearish sentiment in the crypto market. Bitcoin has faced a 3% decline over the past week, exacerbated by significant outflows totaling $300 million from Bitcoin ETFs in recent days.
The intersection of substantial profit-taking by Bitcoin whales and ongoing market volatility underscores the dynamic nature of cryptocurrency trading, with potential implications for market stability and investor sentiment moving forward.
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