Whales Cash Out as Bitcoin Hits a Wall of Selling Pressure

Bitcoin’s retail takeover – Here’s why BTC whales are backing off!

Bitcoin’s price has recently faced growing selling pressure from large holders, or “whales,” who have offloaded over $13 billion in BTC in the past 30 days, marking the largest whale distribution since July 2022 [1]. Whale wallets—those holding between 1,000 and 10,000 BTC—have reduced their holdings by approximately 116,000 BTC, a significant volume that has intensified market volatility [2]. This aggressive profit-taking, which accelerated in late August and early September, has pushed Bitcoin’s price below $109,000, marking a 5.5% monthly decline and breaking a four-month winning streak [2].

Analysts have raised concerns that this sustained whale selling, combined with bearish on-chain signals, could drive the price of Bitcoin below the psychologically significant $100,000 level [1]. The blood moon event, a lunar phenomenon that has historically coincided with market downturns since May 2021, has further fueled pessimism among investors [1]. Meanwhile, Bitcoin’s price has been consolidating within a narrow range of $109,000 to $112,000, and while it remains down nearly 11% from its mid-August peak, it has only corrected about 13% from its all-time high—shallower than previous corrections [1].

Despite the short-term bearish momentum, Bitcoin’s long-term fundamentals remain strong. The one-year moving average has surged from $52,000 to $94,000 over the past 12 months, indicating a resilient price trajectory. Additionally, corporate and institutional investors have been accumulating BTC, with treasury holdings surpassing 1 million BTC in recent months [1]. However, institutional buying has shown signs of caution, as average purchase sizes have declined sharply. For example, institutional buyers acquired only 1,200 BTC per transaction in August, a steep 86% drop compared to early 2025 levels [1].

The bearish sentiment has also extended to Bitcoin-related financial products. Spot Bitcoin ETFs have recorded $383 million in net outflows between Thursday and Friday of the previous week, reflecting weaker investor confidence [5]. The ETFs now hold $144.05 billion in net assets, or 6.48% of Bitcoin’s market cap [3]. Meanwhile, the competition from Ether (ETH) as a corporate reserve asset has intensified, with companies allocating over $200 million to ETH reserves in the past week alone [5].

Bitcoin’s derivatives market also reflects caution, with a 9% delta skew in BTC options at Deribit indicating a strong preference for put (sell) options over call (buy) options [5]. This trend suggests that traders remain wary of further downside, particularly if the price breaks below the $110,000 support level. Additionally, the annualized funding rate for Bitcoin perpetual futures sits at a neutral 11%, up from a bearish 4% the previous weekend, but still signaling a lack of bullish conviction [5].

While whale selling and market uncertainty persist, some analysts remain optimistic about Bitcoin’s potential to stabilize and resume its upward trend. Institutional buyers and ETF inflows have provided a counterbalance to whale dumping, with Japanese firm Metaplanet Inc. recently adding 136 BTC to its treasury [2]. However, the broader market remains sensitive to macroeconomic developments, particularly the U.S. Federal Reserve’s upcoming rate decision on September 17, which could significantly influence liquidity in risk markets [2].

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] Whales Dump 115000 BTC in Largest Distribution Since 2022 (https://bitcoinist.com/whales-dump-115000-btc-in-largest-distribution-2022/)

[3] Bitcoin Whales Sold $13B Over Past 30 Days, BTC ETFs (https://www.ccn.com/news/crypto/bitcoin-whales-sold-13b-btc-etfs)

[4] Bitcoin Futures Sep '25 Futures Contract Specifications (https://www.barchart.com/futures/quotes/BT0/profile)

[5] Bitcoin Tackles $112K, but Will the Rally Stick? (https://cointelegraph.com/news/bitcoin-tackles-dollar112k-but-will-the-rally-stick)

[6] Bitcoin Price Analysis: Crucial Resistance Could Unlock Record Highs (https://cryptopotato.com/bitcoin-price-analysis-crucial-resistance-could-unlock-record-highs/)