New whales trigger Bitcoin’s third profit-taking wave of current cycle

Bitcoin’s failure to hold above $120,000 was accompanied by a surge in selling from large holders, marking what analysts call the “third major profit-taking wave of this bull run.”

Realized profits on Bitcoin () spiked to between $6 billion and $8 billion in late July —  levels that coincided at or near local tops in March and December 2024, according to onchain analytics firm CryptoQuant.

This latest sell-off was driven by “new whales,” who began realizing gains once BTC crossed the $120,000 mark, CryptoQuant noted.

In crypto terms, whales are entities that hold at least 1,000 BTC. Many of them accumulated early and are known to influence market movements. “New whales,” by contrast, have amassed their BTC wealth more recently, raising the likelihood that they include . 

The previous two profit-taking waves followed the launch of US spot Bitcoin exchange-traded funds and the run-up to US President Donald Trump’s inauguration. Both periods were followed by an extended cooling phase in the Bitcoin and broader crypto markets.

However, that cooling phase escalated into a full-blown sell-off in early 2025 after rattled investors and raised concerns about economic growth and inflation.

Still, Bitcoin and the broader crypto market have rebounded sharply since early April, with above $123,000 in July.

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While CryptoQuant’s analysis highlighted new whales as the primary drivers of recent profit-taking, a long-dormant entity that during the Satoshi Nakamoto era recently realized $9.7 billion in profits.

As , the transaction was executed in multiple tranches via Galaxy Digital, with sales routed through major exchanges including Binance, Bybit, Coinbase and Bitstamp.

Despite a brief 4% dip in Bitcoin’s price following the sale, the market quickly recovered, suggesting strong demand and absorption capacity even in the face of large-scale liquidations.

Bitcoin’s performance this year has outpaced most other assets, including the stock market. While the S&P 500 reached record highs last month, it is down 15% year-to-date . Since 2012, the benchmark index has underperformed Bitcoin by 99.98%, according to data from Bitbo.

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