Bitcoin failed to maintain above $120,000, accompanied by a large sell-off from holders, which analysts referred to as the 'third major profit-taking in this bull market.'
According to on-chain analysis firm CryptoQuant, Bitcoin's realized profit surged to a range of $6 billion to $8 billion by the end of July, coinciding with local highs in March and December 2024.
CryptoQuant pointed out that this sell-off was driven by 'new whales' who began to take profits after Bitcoin broke through $120,000.
In the cryptocurrency space, whales refer to entities holding at least 1,000 bitcoins, who are usually early entrants and influential market participants. 'New whales', on the other hand, are those who have recently accumulated wealth, potentially including institutional investors or companies.
The first two profit-taking events occurred before the launch of the Bitcoin spot ETF in the US and before President Trump's inauguration, after which both Bitcoin and the overall crypto market experienced a cooling-off period.
However, at the beginning of 2025, concerns over economic growth and inflation triggered by Trump's tariff policies led to a broad market sell-off.
Nevertheless, since early April, Bitcoin and the overall crypto market have rebounded strongly, and by July, Bitcoin reached a new high of over $123,000.
Related: Bitcoin price returns to $119K, buying 28K BTC of US bonds in two days
Old whales reappear
While CryptoQuant's analysis emphasized that new whales are the main drivers of recent profits, a long-silent entity recently realized a profit of $9.7 billion.
According to Cointelegraph, the transaction was completed in multiple batches through Galaxy Digital and finalized via Coinbase and other major exchanges.
Although the Bitcoin price briefly dropped 4% after the sale, the market quickly recovered, demonstrating strong demand and absorption capacity in the face of large-scale liquidations.
This year, Bitcoin's performance has surpassed that of most other assets, including the stock market. The S&P 500 index reached an all-time high last month, but has fallen 15% when priced in Bitcoin this year. Since 2012, this index has performed 99.98% worse than Bitcoin.
Magazine: Crypto traders are 'deluding themselves' in price predictions: Peter Brandt
