Bitcoin Whales Are Taking Profits, Cashing In $1.2 Billion in 2 Weeks: Analyst
Long-term Bitcoin Whales have started selling their Bitcoin (BTC), earning $1.2 billion in profit over the past two weeks, according to CryptoQuant. On-chain data from the firm reveals that "old whales" have begun selling their coins at much higher prices than when they originally acquired them.
Unprecedented Profit-Taking in USD
"In US dollar terms, this profit-taking is unprecedented," said Julio Moreno, CryptoQuant's Head of Research. The only comparable time was in April 2022, when Bitcoin was trading at $40,000, and old whales took profits worth $683 million in a single day. Back then, the realized profits were higher in Bitcoin terms at 17,000 BTC, compared to this month's profit of 14,000 BTC.
Market Impact and Exchange Deposits
Bitcoin long-term holders have sold $1.2 billion worth of BTC in the past two weeks, likely through brokers. ETF netflows are negative, showing $460 million in outflows over the same period. If this combined $1.6 billion in sell-side liquidity isn't purchased over-the-counter (OTC), brokers might deposit BTC to exchanges, affecting the market.
Who Are Bitcoin Whales?
Bitcoin whales hold at least 1,000 Bitcoin for several years. They are usually companies and institutional investors rather than individuals. Ki Young Ju, CEO of CryptoQuant, suggested that most of these sales likely occurred through brokers, which means the sell-side liquidity hasn't hit the market yet. "Brokers may deposit BTC to exchanges, impacting the market," he warned.
Bearish Momentum in Crypto
A sell-off in whale holdings could worsen the crypto market’s bearish trend. Bitcoin has decreased by 6.6% in the past week. Moreover, there have been $300 million outflows from Bitcoin ETFs in the last two days, and Bitcoin mining firms are also selling their coins to remain operational.
Mixed Signals from On-Chain Data
CryptoQuant’s old whale dashboard doesn't provide the full picture. While some Bitcoin whales are selling, the overall group is still accumulating coins, albeit at a slower rate than in March of this year. Similarly, the market cap of stablecoins is still rising but at a slower rate. Moreno also noted possible overlap between the old whales realizing profits and Bitcoin ETF outflows.
Clarification on ETF and Whale Activity
"However, as this selling was related to long-term whales, it would include only a small fraction of the ETF's Bitcoin holdings," he clarified. Additionally, there was no significant sell-off from ETFs on the same day that long-term holder whales sold (June 5).
Short-Term Holder Cost Basis
CryptoQuant and other on-chain analysts warned that Bitcoin is now trading at the **"short-term holder cost basis"**—the average price at which recent traders bought in. When this support line is broken, those traders often panic sell, leading to price declines of 8% or more.
