Institutional Buyers Counter Whale Sell-Off in $2 Billion Bitcoin Showdown

Bitcoin Whales Trigger $2 Billion Market Shift as Institutional Inflows Offset Selling Pressure

Bitcoin has experienced a significant selloff by large holders, commonly referred to as whales, who have offloaded 114,920 BTC over the past month, amounting to $12.7 billion at current prices. This is the largest whale sell-off since July 2022 and signals growing risk aversion among major investors. The reduced reserves by these large players, who hold between 1,000 and 10,000 BTC, have intensified short-term downward pressure on the price, briefly pushing Bitcoin below $108,000 [2].

Analysts warn that sustained selling, combined with bearish historical signals, could drive Bitcoin below the critical $100,000 level. For instance, a “blood moon” event in early September has historically correlated with market downturns, amplifying concerns among investors. The current price of Bitcoin is trading near $111,000, down nearly 11% from its peak in August, with recent trading activity consolidating within a narrow range between $109,000 and $112,000 [1].

Despite these short-term bearish pressures, Bitcoin’s long-term price trajectory remains resilient. The cryptocurrency has only corrected about 13% from its mid-August all-time high, a relatively shallow pullback compared to previous market corrections. The one-year moving average has surged from $52,000 a year ago to $94,000 today, highlighting the strong undercurrent of bullish momentum. Additionally, the market cap has grown by $1.13 trillion since that period, reflecting robust institutional interest and growing adoption [1].

Institutional accumulation and ETF-driven demand have provided a structural counterbalance to whale selling. In the first week of September, Bitcoin ETFs absorbed $246.42 million in net inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the charge with $434.32 million in inflows. Fidelity’s FBTC and Invesco’s BTCO also recorded positive net flows, while Grayscale’s GBTC continued to see outflows [4].

Corporate treasuries have also contributed to Bitcoin’s price resilience. Strategy, a firm inspired by MicroStrategy, purchased 1,955 BTC worth $217.4 million in a single week, expanding its treasury to over 638,460 BTC, valued at more than $71.6 billion. This corporate buying power has helped absorb new Bitcoin supply, reshaping market dynamics and providing a stabilizing force amid whale selling [4].

The contrast between institutional inflows and whale outflows underscores a structural shift in the market. While whale selling has driven short-term price pressure, ETF flows and corporate demand have increasingly set the tone for Bitcoin’s price action. Analysts suggest that ETF inflows may continue to anchor Bitcoin’s short-term floor, particularly if whale selling moderates. The broader macroeconomic environment, including expectations for Fed rate cuts in 2025, may further influence Bitcoin’s trajectory as investors position for potential liquidity expansion [4].

Source: [1] Analysts Warn of $100K Dip as Bitcoin Sees Biggest Whale Sell-off in 3 Years (https://finance.yahoo.com/news/analysts-warn-100k-dip-bitcoin-082722215.html) [2] Bitcoin whales dump 115000 BTC in biggest sell-off since (https://www.tradingview.com/news/cointelegraph:1d3199665094b:0-bitcoin-whales-dump-115-000-btc-in-biggest-sell-off-since-mid-2022/) [3] Bitcoin Whales Trigger Largest Sell-Off Since 2022 (https://bitbo.io/news/bitcoin-whale-selloff-2025/) [4] Bitcoin ETF Inflows Hit $246M as BTC-USD Holds $112K (https://www.tradingnews.com/news/bitcoin-etf-inflows-surge-246m-usd)