FameEX Hot Topics | New Whales Drive Bitcoin's Third Profit-Taking Wave in Ongoing Cycle

A fresh wave of profit-taking from newly formed Bitcoin whales has marked the third major distribution event in the current bull run, according to CryptoQuant, an on-chain analytics firm. Bitcoin's inability to hold a price above $120,000 sparked an increase in selling activity, predominantly from large holders. This sell-off, which analysts describe as the "third major profit-taking wave" of the current bull market, comes after a significant price surge.

In late July, Bitcoin's price reached new heights, with realized profits for the asset spiking between $6 billion and $8 billion. This increase in profits coincided with local price peaks observed in March and December 2024. CryptoQuant’s data reveals that the latest sell-off was mainly driven by "new whales," who began realizing gains once Bitcoin crossed the $120,000 level. These new whales are believed to be institutional investors or corporations that accumulated Bitcoin more recently, further influencing market trends.

In cryptocurrency markets, "whales" are defined as entities holding at least 1,000 BTC, and they often have a significant impact on price movements. The rise of new whales reflects a shift from earlier bull runs dominated by long-term holders. The involvement of these newer investors highlights the growing institutional interest and influence in the Bitcoin market.

Previously, two major profit-taking waves occurred after key events such as the launch of US spot Bitcoin exchange-traded funds (ETFs) and the lead-up to President Donald Trump’s inauguration. Both events led to cooling phases in the Bitcoin market, extending into the broader crypto sector. However, the cooling phase escalated into a full sell-off in early 2025, triggered by concerns over Trump’s tariff policies and potential economic repercussions.

Despite a brief 4% dip in Bitcoin’s price following the recent sell-off, the market quickly rebounded. Bitcoin reached a new all-time high above $123,000 in July, demonstrating strong market demand and the capacity to absorb large-scale liquidations. This resilience reflects the ongoing strength of the Bitcoin market despite profit-taking events.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.