Bitcoin News Today: Bitcoin Whales’ $4B Profit Dump Sparks Fears of Market Manipulation and Correction

Bitcoin holders with large balances, often referred to as "whales," have recently engaged in significant profit-taking, realizing approximately $4 billion in gains in a single day—marking one of the largest such events since February 2025. According to on-chain analytics firm CryptoOnchain, the majority of this profit—$2.17 billion—came from accounts holding more than 10,000 BTC, while those with holdings between 1,000 and 10,000 BTC contributed $1.25 billion. Smaller whale accounts, holding between 100 and 1,000 BTC, added another $495 million to the total. These large-scale transactions have raised concerns among market observers, with analysts noting that such concentrated selling pressure typically occurs near market peaks and may signal a short-term correction or consolidation phase [1].

The timing of this profit-taking, coinciding with Bitcoin’s recent all-time highs, has intensified speculation about potential market manipulation. For example, one prominent whale, previously inactive for over five years, sold 24,000 BTC in a single weekend, contributing to a sharp price drop of around $4,000. The same whale has since moved another 25,000 BTC, further fueling concerns over its intentions. Analysts have pointed out that these actions, particularly occurring on low-liquidity weekends, suggest an intent to maximize market impact. Such behavior, while not uncommon in highly speculative markets, is often scrutinized for its potential to exacerbate volatility and trigger cascading liquidations in derivatives markets [4].

CoinGlass data also highlights a shift in whale activity, with large buy orders outweighing sell orders in the past 24 hours. The net value of Bitcoin buy orders across major exchanges, including Binance, OKX, and Coinbase, reached approximately $13 million, while the derivatives market saw net buys of roughly $275 million. This increase in whale buying suggests a cautious reentry into the market by major holders. Additionally, exchange inflow data from Binance has shown a notable spike, with the 7-day moving average reaching 13.5 BTC per deposit. This is a typical indicator of whale activity and may suggest further price suppression in the near term [5].

However, the broader picture reveals a more complex dynamic. According to blockchain analyst Willy Woo, the slow price movement in this bull cycle is largely due to the concentration of Bitcoin supply among early adopters and long-term holders. These OG whales, many of whom accumulated Bitcoin during its early years when it traded for as little as $10, are now beginning to divest their holdings. The reactivation of dormant wallets and the movement of large BTC quantities to exchanges and trading platforms reflect a broader shift in ownership, with institutional investors and new market participants gradually taking over. This transition, while beneficial for long-term liquidity and decentralization, introduces short-term volatility as large blocks of Bitcoin are sold into markets with evolving demand [4].

The potential for further market instability is also underscored by recent leverage activity. This week alone, leveraged long positions faced liquidations exceeding $513 million, while short positions saw over $114 million in losses. The liquidation heatmap from CoinGlass indicates that the most significant leveraged long positions are concentrated at $108,000, with over $25.94 million in liquidity at risk. Conversely, short liquidation potential stands at just over $53 million if the price rises to $114,190. These figures highlight the fragility of leveraged positions in a highly volatile market and the potential for another wave of liquidations should Bitcoin’s price swing significantly.

Looking ahead, the market remains under pressure from whale activity, but the broader fundamentals of Bitcoin—such as its stock-to-flow model and growing institutional adoption—suggest a long-term bullish outlook. However, the immediate term may see further turbulence, with whale behavior playing a pivotal role in shaping price movements. As the market navigates this transition period, investors must remain vigilant, particularly as key events such as the anticipated September rate cut and the potential NASDAQ listing of the Trump family’s crypto mining company add to the mix of short-term volatility [5].

Source:

[1] Bitcoin whales realized profits of approximately $4 billion yesterday, the largest single-day profit since February 2025 (https://www.odaily.news/en/newsflash/445820)

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[4] Bitcoin Whale That Sold 24K BTC Last Week Moves Another 25K (https://www.mexc.com/hu-HU/news/bitcoin-whale-that-sold-24k-btc-last-week-moves-another-25k/79532)

[5] Bitcoin Risks Capitulation As Binance Inflows Signal Strong Whale Selloff (https://www.thecoinrepublic.com/2025/08/29/bitcoin-risks-capitulation-as-binance-inflows-signal-strong-whale-selloff/)