Bitcoin News Today: Institutional Exodus and Whale Sell-Offs Pose New Threat to Bitcoin's Rally

Bitcoin (BTC) long-term holders have realized 3.27 million BTC in profits during the current cycle, the second-highest amount in the cryptocurrency’s history, according to crypto analyst Cas Abbé. This level of profit-taking is historically indicative of a bull market in its later stages. The sell-off by older coin holders—often referred to as "old hands"—suggests that a significant portion of older Bitcoin is already being sold at elevated price levels, raising concerns about the sustainability of BTC’s upward momentum [1].

The on-chain activity underscores a potential shift in sentiment among Bitcoin’s long-term holders. These investors typically accumulate during market lows and distribute during highs, and their recent behavior aligns with patterns observed during the 2017 bull run. The distribution phase, as noted by Abbé, has historically coincided with market tops and may precede a pullback or correction. This metric is closely linked to the Spent Output Profit Ratio (SOPR), which has shown elevated values, signaling overextended bullish sentiment in the market [1].

In addition to the large-scale distribution by LTHs, Bitcoin’s price movement has been constrained within a range of $50,000 and $70,000 in late August 2025. During periods of profit-taking, trading volumes have spiked, particularly around key price levels. A break below the $55,000 support level could trigger further selling pressure, especially if the distribution by long-term holders continues. Institutional interest has also waned, with ETF inflows slowing, and on-chain data indicating a decline in LTH supply from 14 million BTC at the start of the cycle to approximately 10.5 million BTC now [1].

Meanwhile, short-term Bitcoin holders (STHs) have also experienced a shift in their realized price, which currently stands at $107,000. On-chain data indicates that Bitcoin has moved dangerously close to this level, which historically acts as a psychological barrier. STHs—holders who purchased Bitcoin within the last 155 days—are known for reacting quickly to market shifts, often buying during dips in bull markets or selling during bearish retests. A retest of the $107,000 level could either see accumulation or increased selling, depending on market sentiment. This level coincides with the 200-day moving average of BTC, currently at $100,700, which adds another layer of technical significance to the price action [2].

Recent bearish momentum has been amplified by several factors, including dormant whale movements and ETF outflows. Approximately 24,000 dormant Bitcoin addresses have moved onto exchanges, triggering cascading sell-offs in an already fragile order book. These movements coincided with a sharp decline in BTC’s price, which briefly dipped below $110,000 and later to as low as $108,800. ETFs, which had previously provided support, have recorded over $1 billion in outflows, removing a key stabilizing force from the market. At the same time, capital rotation has shifted toward Ethereum, with ETH-linked products drawing significant inflows in August [3].

The market now finds itself at a critical inflection point. Analysts suggest that Bitcoin could either consolidate within the $110,000–$120,000 range or face a break lower toward $105,000–$100,000. A period of consolidation may allow market participants to digest the recent distribution phase. However, any further downward movement could trigger renewed bearish sentiment and prompt hedging strategies, including protective puts or diversification into stablecoins or other assets. Institutional buyers remain active, but retail demand has weakened, indicating a shift in investor behavior [3].

Source:

[1] Bitcoin (BTC) Long-Term Holders Realize 3.27M BTC in Profits This Cycle, Second Only to 2017 — Late-Bull Signal Traders Should Watch (2025) (https://blockchain.news/flashnews/bitcoin-btc-long-term-holders-realize-3-27m-btc-in-profits-this-cycle-second-only-to-2017-late-bull-signal-traders-should-watch-2025)

[2] Bitcoin Keeps Slipping Down: Is $107000 The Next Support? (https://www.mitrade.com/insights/news/live-news/article-3-1071529-20250827)

[3] Dormant Whale Sell-Off and ETF Outflows Weigh on Bitcoin ... (https://finance.yahoo.com/news/dormant-whale-sell-off-etf-124406217.html)