Bitcoin’s recent inability to maintain its position above the $120,000 threshold has led to a fresh round of heavy selling, with analysts identifying it as the third significant profit-taking event of the ongoing bull cycle.
According to on-chain data from CryptoQuant, realized profits on Bitcoin soared to between $6 billion and $8 billion toward the end of July — levels that have historically coincided with market peaks, like those seen in March and December of 2024.
This surge in profit realization appears to be driven by a new category of large investors. These “new whales” began offloading their holdings once BTC crossed the $120,000 mark. Unlike traditional whales — long-time holders with over 1,000 BTC often dating back to Bitcoin’s early years — these newer players likely include institutional entities or companies that entered the market more recently.
The two previous major sell-offs in this cycle were linked to the approval of spot Bitcoin ETFs in the U.S. and the anticipation surrounding President Donald Trump’s return to office. Both events sparked considerable enthusiasm but were followed by periods of market consolidation.
That consolidation phase deepened into a broader correction in early 2025, as concerns over Trump’s trade and tariff strategy stirred fears around inflation and growth. Despite that, Bitcoin and other digital assets staged a robust recovery starting in April, eventually pushing BTC to a record high above $123,000 in July.
Old Giants Return to Action
While newer whales dominated the most recent wave of selling, dormant addresses from Bitcoin’s early days are also showing signs of activity. One such holder — who amassed 80,000 BTC during the era of Satoshi Nakamoto — recently realized an estimated $9.7 billion in profits.
The sale was executed in batches via Galaxy Digital, and involved transactions routed through top-tier exchanges such as Binance, Coinbase, Bitstamp, and Bybit.
Though the sale initially triggered a modest 4% drop in BTC’s price, the market bounced back quickly, highlighting strong demand and the ecosystem’s resilience to absorb large-scale liquidations.
Bitcoin’s Edge Over Traditional Markets
Bitcoin’s performance in 2025 continues to outshine traditional assets. Despite the S&P 500 recently hitting new highs, it’s down approximately 15% when compared to Bitcoin year-to-date. In fact, since 2012, the index has underperformed Bitcoin by nearly 99.98%, according to data from Bitbo.
This divergence emphasizes Bitcoin’s growing position not only as a speculative asset but also as a long-term store of value in an evolving macroeconomic landscape.
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