FameEX Hot Topics | New Whales Spark Bitcoin’s Third Profit-Taking Wave in Current Cycle

A fresh wave of profit-taking has emerged from newly formed Bitcoin whales, marking the third major distribution event in the current bull run, according to on-chain analytics firm CryptoQuant. Bitcoin's inability to sustain a price above $120,000 triggered a surge in selling activity, primarily from large holders, signaling what analysts are calling the "third major profit-taking wave" of this bull market.

The sell-off occurred after Bitcoin’s price surged to new heights, peaking in late July. Realized profits for Bitcoin reached between $6 billion and $8 billion, a significant spike that aligns with local tops observed in March and December 2024. CryptoQuant’s data reveals that this latest sell-off was particularly driven by "new whales" who began realizing gains once Bitcoin crossed the $120,000 threshold.

In cryptocurrency markets, "whales" refer to entities holding at least 1,000 BTC. These large holders often play a pivotal role in influencing market trends. The emergence of "new whales" indicates that institutional investors or corporations, who have accumulated Bitcoin more recently, are now actively influencing the market. This recent shift marks a significant change from earlier bull runs dominated by long-term holders.

The previous two profit-taking waves occurred following major milestones, including the launch of US spot Bitcoin exchange-traded funds (ETFs) and the run-up to US President Donald Trump’s inauguration. Both instances led to cooling phases in the Bitcoin market, which extended across the broader cryptocurrency sector. However, the cooling phase escalated into a full sell-off in early 2025, fueled by concerns over Trump's tariff agenda and its potential impact on economic growth and inflation.

Despite the brief dip in Bitcoin’s price—around 4% following the sale—markets have quickly rebounded. Since early April, Bitcoin has surged to a new all-time high above $123,000 in July, showcasing strong market demand and absorption capacity, even in the face of large-scale liquidations. 

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