Bitcoin News Today: Bitcoin's third major profit-taking wave hits $6B to $8B as whales exit above $120K

Bitcoin's 2024 bull market has seen its third major profit-taking event, with realized profits reaching between $6 billion and $8 billion by late July, driven largely by newly entered large investors, or "whales," selling positions above $120,000 [1]. This development aligns with previous peaks observed in March and December of the same year, indicating a cyclical trend in investor behavior during bullish phases [1]. The selloff was triggered as Bitcoin passed key psychological price thresholds, prompting investors to lock in gains and adjust portfolios [1].

The selling activity has been dominated by new whale investors, who entered the market during the price surge and are now reducing their holdings [1]. Over 502,000 BTC reportedly flowed into institutional hands during this period, reflecting growing confidence in Bitcoin’s market depth and institutional adoption [1]. Analysts note that such profit-taking is a normal part of market cycles, helping to maintain liquidity and reset speculative momentum for more stable price appreciation [1].

For retail investors, the significance of realized profit metrics lies in their ability to signal shifts in market sentiment and potential turning points. High levels of realized profit often precede periods of consolidation or correction [1]. Strategies such as dollar-cost averaging and identifying accumulation zones during dips are recommended to manage the inherent volatility of the market while maintaining a long-term investment outlook [1]. Institutional adoption, including Bitcoin ETFs and corporate treasury allocations, is expected to further stabilize the market over time [1].

The broader implications of this event extend beyond short-term price movements. The current bull cycle appears to be unfolding in a more mature and structured market environment compared to previous cycles, with greater institutional participation and improved infrastructure [1]. As Bitcoin approaches its next halving event—a historical catalyst for bull markets—the market’s resilience and liquidity are being tested in ways that suggest stronger foundational support [1].

While short-term volatility remains a characteristic of the market, the third large-scale profit-taking episode highlights Bitcoin's growing maturity as an asset class. The interplay between whale activity, institutional flows, and macroeconomic factors such as inflation and interest rates continues to shape its trajectory [1].

Source: [1] Bitcoin’s Astounding Profit-Taking Waves: What Every Investor Needs to Know (https://coinmarketcap.com/community/articles/688b9b08286adf6d7d4812c3/)