Bitcoin Whales Sell Off 40% of Holdings Causing 16% Price Drop

Coin WorldWednesday, Jun 4, 2025 12:16 am ET
2min read

Bitcoin is currently experiencing a period of profit-taking as large investors, often referred to as "whales," continue to sell off their holdings. This sell-off is triggering a cascade of selling activity, as smaller investors follow suit, leading to a decline in Bitcoin's price. The sell-off by whales is a strategic move to trigger fear among retail traders, causing them to sell at a loss. Once the market dips sufficiently, these large investors are expected to re-enter the market to buy back at lower prices.

The recent decline in Bitcoin's price has been attributed to broader macro factors such as tariff uncertainty and profit-taking by large investors. This has highlighted Bitcoin's vulnerability to short-term swings, especially after its rally to $110,000. The sell-off by whales is a common tactic used to manipulate the market and create buying opportunities at lower prices. This strategy often leads to a temporary dip in the market, which can be seen as an accumulation zone for investors looking to buy at a discount.

The sell-off by whales is not an isolated event but part of a broader trend in the market. Large investors often sell early to trigger fear, causing prices to fall. Retail traders, who are more susceptible to market sentiment, follow and sell at a loss. Once the market dips enough, whales re-enter the market to buy back at lower prices, creating a cycle of profit-taking and accumulation.

Analyst Willy Woo noted that "big whales" with over 10,000 Bitcoin have been selling since 2017. Most of these coins were bought between $0 and $700 and held for 8 to 16 years. The supply held by whale entities with a balance between 10,000 and 100,000 Bitcoin has been in steady decline for the past eight years, falling by around 40% from 2.7 million to around 1.6 million BTC.

Woo also suggested that it doesn’t make sense in the short term to invest in Bitcoin while it’s trading for six figures, but within another 10 years it will be “probably one of the best investments you'll see in your investment career.”

On June 3, Glassnode stated that the recent Bitcoin all-time high breakout, which culminated in a new peak of just under $112,000 on May 22, led to a “notable uptick in profits locked in, with the average coin capturing a 16% profit.” Fewer than 8% of trading days have been more profitable for investors, “suggesting a meaningful transition into profit-taking activity is underway.”

The analytics platform also reported that entity-adjusted realized profit spiked above $500 million per hour three times on June 3, “signaling intense profit-taking activity.”

Bitcoin has held above six figures for the longest period in history at 27 days, eclipsing the 18 days it remained above $100,000 in January. However, momentum was halted as the asset fell back to $105,750 during early trading on June 4.

The recent sell-off by whales has also been attributed to the improving fundamentals within the Ethereum ecosystem. Ether-based ETPs have drawn significant investor interest, with the largest altcoin by market cap experiencing a quiet momentum shift. This suggests that investors are beginning to look beyond Bitcoin for value, as capital continues to flow into Ether while BTC stalls. The renewed appetite for Ether ETPs isn't just about a single asset finding its footing again; it may signal a major change in sentiment, where investors are beginning to look beyond Bitcoin for value.