Whales Dumping Bitcoin: A Tale of Market Woes 🐳📉

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TL;DR

  • Long-term Bitcoin holders show heavy activity, a sign often seen near market tops or correction periods.
  • Whale balances drop to levels last seen in 2018, suggesting ongoing quiet distribution.
  • Bitcoin breaks a multi-week downtrend, but profit-taking and whale exits raise short-term caution.

Long-Term Holders Begin Moving Coins

Recent data reveals that wallets holding Bitcoin for extended periods have started to stir, much like a sleepy bear awakening from hibernation. The Long-Term Holder Binary Spending Indicator, a metric that tracks the movement of older Bitcoin wallets, now shows increased activity. Historically, such spikes have occurred near price peaks and before broader corrections, a fact that does not escape the keen eyes of market analysts.

WHALES ARE DUMPING #BITCOIN, A SIGN OF TROUBLE AHEAD?

A key on-chain indicator, the long-term holder binary spending indicator, shows old Bitcoin whales are beginning to sell their holdings.

Historically, these movements have preceded major market corrections, signaling a…

– Bitcoinsensus (@Bitcoinsensus) September 3, 2025

Bitcoin is currently trading near local highs, a curious phenomenon that has not gone unnoticed by market watchers. The timing of this behavior may be linked to expectations around potential policy changes by the Federal Reserve. As shared by Bitcoinsensus,

“whales might be anticipating a market-wide correction once the Fed begins cutting rates.”

The pattern is being closely watched, given its history of aligning with key turning points in BTC’s price. Notably, Bitcoin’s net realized profit and loss data show that many holders have been selling at a profit. July and August saw multiple spikes in realized gains, coinciding with price increases. These periods match recent market highs, suggesting holders may have been reducing exposure as prices climbed.


At the time of writing, Bitcoin was priced at around $111,200, with moderate gains over the past 24 hours and the past week. Most transactions still appear to be happening above cost, indicating that selling is not driven by losses. The market tone seems calm but cautious, with more participants opting to take profits rather than ride the wave.

Average Whale Holdings Continue to Drop

The average Bitcoin balance held by large entities is now at its lowest level in nearly seven years, a fact that would make even the most stoic investor raise an eyebrow. According to Glassnode, wallets holding between 100 and 10,000 BTC currently hold about 488 BTC on average, a level last seen in December 2018. The decline began in November 2024 and has continued into the present.

Consequently, this steady decrease suggests that larger holders have been gradually reducing their positions. Whether this trend continues will depend on upcoming market conditions and external factors like macroeconomic policy and capital rotation. It’s a dance of supply and demand, with the whales leading the way.

Price Breaks Out of Downtrend

On the chart, Bitcoin has managed to close above a downward trendline that had held since early August, a small victory in the grand scheme of things. Rekt Capital noted this move with a sense of cautious optimism,

“BTC has Daily Closed above its multi-week Downtrend.”


This breakout might indicate that the downtrend is weakening, though it remains to be seen if Bitcoin can maintain its position above the trendline. Holding this level on a retest could strengthen short-term recovery possibilities. If not, the bears might regain control of the market, sending prices back into a downward spiral. Only time will tell if the whales’ actions are a harbinger of things to come or just another ripple in the vast ocean of cryptocurrency. 🌊 BTC

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2025-09-03 17:59