Will Bitcoin Recover After the Largest Whale Sell off in Years?

Bitcoin faced heavy selling pressure in late August and early September as large holders, commonly known as whales, offloaded more than 115,000 BTC, worth roughly $12.7 billion, according to  CryptoQuant analyst, “caueconomy.”

This represents the largest whale distribution since mid-2022 and marks a notable shift in large-scale Bitcoin holdings.

caueconomy noted:

“The trend of reducing exposure by major Bitcoin network players continues to intensify, reaching the largest coin distribution this year.”

Whale Sell-Off Details

The recent sell-off came from holders with balances between 1,000 and 10,000 BTC. Between April and August, these whales had accumulated about 270,000 BTC. Over the last thirty days, they reduced their holdings by more than 100,000 BTC, reflecting what analysts describe as heightened risk aversion among large investors.

Short-Term Price Impact

The selling pressure affected Bitcoin’s price structure, pushing it below $108,000 during the heaviest distribution period. For context:

• The seven-day daily balance change peaked at over 95,000 BTC on September 3, the highest weekly movement since March 2021.
• The aggressive distribution pushed Bitcoin to trade in a tighter range between $110,000 and $111,000 in the following days.
• The 30-day change totals 114,920 BTC, highlighting the scale of this distribution relative to previous sell-offs.

Whale Behavior and Market Dynamics

CryptoQuant defines whales as holders of 1,000 to 10,000 BTC. These players tend to influence short-term market fluctuations due to the volume of coins they manage. Analysts describe the recent sell-off as a form of profit-taking, following months of accumulation during which whales increased their exposure to Bitcoin significantly.

The correction in August, where Bitcoin fell 6.5% from its $115,778 opening price, ended a four-month winning streak. The 13% decline from the mid-August all-time high is considered relatively shallow compared to previous pullbacks.

Slowing Selling Pressure

Recent data indicates that the aggressive selling may be abating:

• Weekly balance changes dropped to around 38,000 BTC as of September 6.
• Bitcoin’s trading range narrowed, suggesting reduced market volatility.
• The asset stabilized between $110,000 and $111,000, indicating a short-term equilibrium as whale selling slows.

This slowdown may provide a temporary relief to price action, but analysts caution that major holders are still adjusting portfolios.

Institutional Buying as a Counterbalance

While whale sell-offs created short-term volatility, institutional accumulation has helped maintain market stability. Nick Ruck, director at LVRG Research, told CoinTelegraph that corporate buyers and ETF-driven demand provided a “structural counterbalance” to whale activity.

Key points include:

• Institutional buyers absorbed some of the selling pressure from whales.
• ETF demand and corporate acquisitions continued alongside whale reductions.
• Divergence between whale selling and institutional buying indicates that market resilience remains intact.

This balance suggests that while large holders may cap short-term price gains, broader demand from institutional participants could offset some of the selling pressure.

Long-Term Market Outlook

Despite recent volatility, Bitcoin’s long-term indicators remain positive:

• The one-year moving average has risen from $52,000 to $94,000 over the past year.
• Monthly closes above $110,000 have failed since July, signaling consolidation.
• The overall market correction of 13% from mid-August highs is less severe than prior declines.

Analysts note that macroeconomic events, including upcoming Federal Reserve decisions, may influence the next directional move. The FOMC meeting scheduled within ten days could impact market sentiment.

Meanwhile, Bitcoin might have about 27% of its upside left in the current cycle before heading into a downtrend, says Canary Capital CEO Steven McClurg.

Speaking to CNBC on Friday, McClurg noted there’s a better than 50% chance that Bitcoin could climb into the $140,000 to $150,000 range this year, after which another bear market may follow in 2026.

Structural Market Observations

• Bitcoin has maintained broader support despite short-term whale activity.
• Historical data shows that sell-offs of this scale often coincide with periods of accumulation by smart money and institutions.
• Recent whale reductions may act as a reset, allowing healthier market formation over time.

Clarifying Misconceptions: Tether Bitcoin Holdings

Meanwhile, speculation emerged that Tether had sold a significant portion of its Bitcoin to purchase gold. Tether CEO Paolo Ardoino denied these claims, stating the company “didn’t sell any Bitcoin” and remains committed to allocating profits across Bitcoin, gold, and land.

Analysts confirmed that the reported reduction from 92,650 BTC in Q1 to 83,274 BTC in Q2 2025 was due to transfers to Twenty One Capital (XXI), not sales. This included 14,000 BTC in June and 5,800 BTC in July.

Conclusion

Bitcoin whales sold more than 115,000 BTC, marking the largest distribution since July 2022. The heavy selling pushed prices below $108,000, although the pressure has eased in recent days. Institutional accumulation stepped in to offset the impact of whale-driven volatility, helping stabilize the market. 

Despite these swings, long-term averages and consolidation patterns show resilience. The episode highlights how concentrated holders shape short-term movements, yet institutional buying and broader fundamentals continue to provide support for overall market stability.

Resources:

1. Comments from caueconomy: https://cryptoquant.com/insights/quicktake/68b98e16673055350a1c0c67-The-Largest-Selloff-of-Whale-Holdings-Since-2022

2. Canary Capital CEO Steven McClurg’s interview with CNBC: https://www.youtube.com/watch?v=qUIOz0HwEEk

3. Bitcoin price action: https://coinmarketcap.com/currencies/bitcoin/