Bitcoin News Today: Bitcoin Faces Major Profit-Taking Wave as Whales Offload $9.6 Billion in July

Bitcoin is experiencing its third major wave of profit-taking in the current bull cycle, driven by large institutional and high-net-worth investors—commonly known as "whales"—who are offloading substantial portions of their holdings. Between late June and late July, realized profits from Bitcoin transactions surged between $6 billion and $8 billion, a level observed during previous local tops in March and December 2024, according to on-chain analytics firm CryptoQuant [1]. The latest sell-off was primarily triggered by "new whales," a term used for entities that have accumulated significant Bitcoin holdings in recent years, often including institutional investors or corporations [1]. These new whales began realizing gains after Bitcoin crossed the $120,000 threshold, signaling a strategic move to lock in profits amid heightened market optimism [1].

The previous two profit-taking waves coincided with the launch of U.S. spot Bitcoin exchange-traded funds and the run-up to U.S. President Donald Trump’s inauguration. Following these events, the market experienced prolonged cooling periods, with Bitcoin and other cryptocurrencies retreating from highs. However, in early 2025, concerns over Trump’s tariff agenda led to a broader sell-off, intensifying fears of economic slowdown and inflation [1]. Despite these challenges, Bitcoin has rebounded sharply since early April, reaching a new all-time high above $123,000 in July [1].

While new whales are the primary force behind the current profit-taking phase, older whale entities have also reemerged. A long-dormant investor who accumulated 80,000 BTC during the Satoshi Nakamoto era recently realized $9.7 billion in profits by selling through Galaxy Digital and major exchanges such as Binance, Bybit, Coinbase, and Bitstamp [1]. Although the sale initially caused a 4% dip in Bitcoin’s price, the market swiftly recovered, indicating strong demand and absorption capacity even amid large-scale liquidations [1].

The recent trend of whales offloading significant BTC positions is reshaping market dynamics. Unlike traditional retail-driven market cycles, institutional and corporate entities are now playing a dominant role in Bitcoin’s price action and liquidity distribution [1]. This shift has implications for market stability, as large-scale transactions can influence price volatility and investor sentiment.

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 when measured in Bitcoin terms. Since 2012, the benchmark index has underperformed Bitcoin by 99.98%, according to data from Bitbo [1]. This divergence highlights Bitcoin’s role as a unique asset class, driven by distinct macroeconomic and on-chain factors.

Fidelity Digital Assets noted that Bitcoin’s bull cycle remains intact, with July alone recording five all-time high closes. The firm’s analysis shows that nearly 60% of the past 91 days have been part of the “Acceleration Phase,” a period marked by sharp price movements and significant profit-taking opportunities. This phase typically precedes the final leg of a bull market and is characterized by high volatility and strong buying pressure from institutional players [3].

On July 31, the market absorbed a massive $9.6 billion Bitcoin sell-off as a large whale offloaded 80,000 BTC [5]. Despite the size of the transaction, Bitcoin remained above $100,000, showcasing the market’s resilience and depth. The move also coincided with a broader trend of whales diversifying their portfolios, with some shifting capital toward alternative cryptocurrencies such as Cardano, Tron, and Solana for potential August gains [4].

However, the profit-taking environment has also led to a sharp drop in Bitcoin’s net realized profit, which fell to $1.4 billion as the market digested the distribution of 80,000 BTC from Galaxy [5]. This development underscores the delicate balance between continued bullish momentum and the risk of overextended positions triggering a market correction.

The market now awaits clear signals on whether Bitcoin can sustain its rally or if early signs of a “blow-off top” may emerge. Analysts are closely monitoring whether the acceleration phase can be maintained or if a reversal—marked by high volatility and low returns—may begin to take hold [3]. The actions of whales, both old and new, will likely remain central to shaping Bitcoin’s next move.

---

Source:

[1] AInvest (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-major-profit-wave-hits-6b-8b-whales-exit-120k-2508/)

[2] PANews (https://www.panewslab.com/en/articles/zj2oj47f)

[3] CryptoDnes.bg (https://cryptodnes.bg/en/bitcoins-acceleration-phase-dominates-2025-as-ath-streak-extends/)

[4] BeInCrypto (https://beincrypto.com/crypto-whales-august-potential-gains/)

[5] AInvest (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-withstands-9-6-billion-sell-market-absorbs-historic-pressure-2507/)

[6] Mitrade (https://www.mitrade.com/insights/news/live-news/article-3-998623-20250731)