Bitcoin whales have initiated a significant sell-off, offloading 115,000 BTC, worth approximately $12.7 billion, in the last month. This marks the largest distribution of coins by major Bitcoin network players since July 2022. The substantial sell-off is putting downward pressure on Bitcoin's price, which briefly dipped below $108,000, signaling a potential period of increased volatility and risk aversion among large investors.
Analysts at CryptoQuant observed that whale reserves have decreased by over 100,000 Bitcoin in the past 30 days, indicating a strong trend of reducing exposure among major Bitcoin holders. This intense selling pressure has negatively impacted the short-term price structure of Bitcoin. The seven-day daily change balance reached its highest level since March 2021 on September 3, with whales shifting more than 95,000 BTC that week. While the aggressive selling appears to have slowed, with the weekly balance change dropping to around 38,000 BTC as of September 6, continued reductions in whale portfolios could further pressure Bitcoin in the coming weeks.
The recent price action saw Bitcoin retreat to around $115,000 after experiencing a surge towards record highs. A previous sell-off saw a large whale liquidate 24,000 BTC, worth over $2.7 billion, causing Bitcoin's price to drop from $115,000 to $111,000. This demonstrates the significant impact that whale activity can have on the cryptocurrency market, especially during periods of thinner trading volumes.
The Coin Days Destroyed (CDD) metric, which measures the movement of long-held coins, has also spiked. Analysts note that many of the sold BTC had been dormant for months or years, suggesting that seasoned investors are taking profits. Historically, CDD spikes have coincided with distribution points before sharp market corrections, such as those in 2017 and 2021.
Despite the recent volatility and whale sell-off, some observers maintain that the broader bull trend for Bitcoin remains intact. Institutional inflows and tight exchange balances continue to provide underlying support, even as short-term players absorb selling pressure. The market is closely watching the $110,000–$115,000 range as a critical support zone. Whether this sell-off proves to be a healthy reset or the start of a deeper correction will depend on how the market reacts to continued whale distribution.
It's important to note that underlying network fundamentals remain strong, despite the price weakness. Bitcoin's hash rate, a measure of the total computational power securing the network, is approaching a new record high. The Bitcoin Fear and Greed Index, a tool that helps investors analyze market sentiment, is currently categorized as "neutral," but hovers just above "fear," indicating that market sentiment has not yet fully tipped into fear.
