Key Takeaways:
Bitcoin realized profits surged to $6–8B in late July, signaling the third major distribution wave of the bull market.
“New whales” — likely institutions and corporations — led the selling after BTC crossed $120K.
Despite profit-taking and a 4% dip, BTC price quickly rebounded, showing strong demand.
Bitcoin’s latest failure to hold above $120,000 has coincided with a fresh round of selling from large holders, marking the third major profit-taking wave of this bull run, according to CryptoQuant.
Bitcoin Realized Profits Spike
Onchain data shows realized profits on Bitcoin (BTC) jumped to $6–8 billion in late July — levels last seen during local tops in March and December 2024.
“This latest sell-off was driven by ‘new whales,’ who began realizing gains once BTC crossed the $120K mark,” CryptoQuant analysts noted.
In crypto terms, whales hold at least 1,000 BTC. But these “new whales” accumulated their stacks more recently, suggesting they may include institutional investors or corporations now taking profits.
Three Waves of Profit-Taking
Wave 1: After the launch of U.S. spot Bitcoin ETFs (early 2024).
Wave 2: Before President Donald Trump’s inauguration (late 2024).
Wave 3: Now, as BTC crossed $120K, triggering fresh institutional profit-taking.
The earlier waves led to cooling phases in Bitcoin and crypto markets, with the second wave escalating into a sell-off in early 2025 after Trump’s tariff policies rattled investors.
Yet Bitcoin rebounded strongly in April, climbing to a new all-time high above $123K in July.
Old Whales Also Cash Out
While new whales drove the latest round of selling, long-dormant whales also emerged. A Satoshi-era entity holding 80,000 BTC recently realized $9.7B in profits, offloading via Galaxy Digital across major exchanges.
Bitcoin briefly dipped 4% on the sale — but buyers quickly absorbed the supply, reflecting strong market demand.
BTC Still Outperforming Everything Else
Despite these profit-taking events, Bitcoin’s 2025 performance has been exceptional:
The S&P 500 hit record highs last month but is down 15% year-to-date in BTC terms.
Since 2012, the index has underperformed Bitcoin by 99.98%, according to Bitbo data.
