Bitcoin Price: Unveiling the Crucial Third Profit-Taking Wave by New Whales

The cryptocurrency market is a dynamic realm, often influenced by the movements of its largest participants. For anyone tracking the latest trends, understanding these seismic shifts is paramount. Recently, the Bitcoin price has been at the center of attention, not just for its impressive highs, but for a significant development signaling a new phase in its ongoing bull run: a third major wave of profit-taking triggered by newly emerged crypto whales.

Understanding the Latest Bitcoin Price Action: A Third Wave Emerges

Bitcoin’s journey has been nothing short of spectacular, yet its path is rarely linear. The recent failure of Bitcoin to firmly hold above the $120,000 mark wasn’t just a random fluctuation; it coincided with a notable surge in selling activity from large holders. This event, as highlighted by on-chain analytics firm CryptoQuant, marks what analysts are now calling the “third major profit-taking wave of this bull run.”

This isn’t just a minor blip. Realized profits on Bitcoin (BTC) recently spiked dramatically, reaching levels between $6 billion and $8 billion in late July. To put this in perspective, these are the kinds of profit realization levels that previously coincided with or closely preceded local market tops, as observed in March and December 2024. Such a substantial movement suggests a coordinated or at least significant action from major market players.

The Rise of ‘New’ Crypto Whales: Who Are They?

The key players behind this latest distribution event are what CryptoQuant terms “new whales.” In the crypto lexicon, a “whale” is typically an entity holding at least 1,000 BTC. These are often long-term holders who accumulated Bitcoin early and possess the capacity to significantly influence market movements with their large holdings.

However, “new whales” represent a distinct category. Unlike their veteran counterparts, these entities have amassed their considerable BTC wealth more recently. This distinction is crucial because it raises the intriguing possibility that these new entrants include institutional investors or even corporations. Their motivations and risk profiles might differ from those who’ve held Bitcoin for a decade or more, potentially leading to different market behaviors. Their decision to realize gains once BTC crossed the $120,000 threshold underscores a strategic approach to capital management, perhaps tied to specific investment mandates or quarterly performance targets.

Decoding the Profit-Taking Phenomenon: What History Tells Us

This isn’t the first time the Bitcoin market has witnessed significant profit-taking waves in its current cycle. History, as always, offers valuable context. The previous two major distribution phases followed distinct catalysts:

• First Wave: Post-launch of US spot Bitcoin exchange-traded funds (ETFs). The introduction of these highly anticipated investment vehicles brought a new wave of institutional and retail capital into Bitcoin, pushing prices higher, but also providing an opportune moment for early investors to take profits.
• Second Wave: The run-up to US President Donald Trump’s inauguration. Political events can often trigger market volatility, and the anticipation around a new administration, especially one with a stated interest in economic policy shifts, created another window for large holders to de-risk or secure gains.

Both of these earlier periods were followed by an extended cooling phase in the Bitcoin and broader crypto markets. The most recent cooling phase, however, escalated into a more pronounced sell-off in early 2025. This downturn was largely attributed to investor jitters caused by Trump’s proposed tariff agenda, which raised broader concerns about global economic growth and potential inflation. This historical pattern of profit-taking leading to consolidation or corrections is a vital part of understanding the ongoing Bitcoin market cycle.

Navigating the Bitcoin Market Cycle: Resilience Amidst Distribution

Despite the recent profit-taking and the historical precedents of subsequent cooling phases, the Bitcoin market has demonstrated remarkable resilience. Since early April, Bitcoin and the broader crypto market have rebounded sharply, with BTC even reaching a new all-time high above $123,000 in July. This swift recovery, even in the face of significant distribution, speaks volumes about the underlying demand and the market’s capacity to absorb large sell orders.

Adding to this narrative of resilience, an intriguing event unfolded recently involving a long-dormant entity. This “old whale,” who accumulated a massive 80,000 BTC during the Satoshi Nakamoto era, realized a staggering $9.7 billion in profits. This monumental transaction was executed in multiple tranches via Galaxy Digital, with sales routed through major exchanges like Binance, Bybit, Coinbase, and Bitstamp. Despite a brief 4% dip in Bitcoin’s price immediately following this colossal sale, the market quickly recovered. This rapid rebound underscores the robust demand and the market’s deep liquidity, even when confronted with sales of unprecedented scale. It suggests that new buyers are readily stepping in, absorbing supply and maintaining upward pressure on the Bitcoin price.

Key Insights from BTC Analysis: What to Watch Next

The ongoing BTC analysis reveals a market that, while experiencing profit-taking, is fundamentally strong. Bitcoin’s performance this year has consistently outpaced most other asset classes, including the traditional stock market. While the S&P 500 reached record highs last month, it is notably down 15% year-to-date when measured in Bitcoin terms. Looking back further, data from Bitbo shows that since 2012, the benchmark S&P 500 index has underperformed Bitcoin by an astonishing 99.98%. This consistent outperformance reinforces Bitcoin’s position as a premier asset for long-term growth.

For investors, these insights are crucial. The actions of crypto whales, particularly the “new whales,” provide a window into sophisticated market sentiment. Their profit-taking isn’t necessarily a sign of a bearish reversal but rather a natural part of a bull market where participants lock in gains. The market’s ability to absorb these large sales and quickly recover suggests that the underlying demand remains robust, driven by continued adoption, institutional interest, and Bitcoin’s inherent value proposition.

As we move forward, market participants should continue to monitor on-chain metrics, especially those tracking whale movements and realized profits. While temporary pullbacks due to profit-taking are expected, the overall trend, supported by strong demand and Bitcoin’s historical outperformance, appears positive. The market’s resilience in the face of significant distribution events suggests that any dips could be seen as opportunities by those looking to accumulate.

Compelling Summary: Navigating Bitcoin’s Evolving Landscape

The emergence of a third major profit-taking wave, driven by “new whales,” marks a significant moment in Bitcoin’s current bull run. These large-scale distributions, mirroring previous cycles, underscore the strategic actions of major holders. Yet, the market’s swift recovery from both recent new whale selling and a historic old whale liquidation highlights Bitcoin’s remarkable resilience and robust demand. For investors, understanding these intricate movements, particularly the motivations behind profit-taking by different types of crypto whales, is key to navigating the dynamic Bitcoin market cycle. The ongoing BTC analysis continues to show Bitcoin outperforming traditional assets, solidifying its position as a dominant force in the financial landscape.