A significant shift in Bitcoin's ownership structure is unfolding, as large-scale holders, often termed "whales," have executed the most substantial sell-off since 2022. This divestment, totaling over $12 billion, has introduced notable volatility into the market. Yet, underlying institutional demand appears to be providing a robust counterweight, illustrating a complex interplay of short-term risk aversion and sustained long-term interest in the cryptocurrency landscape.
In August, Bitcoin whales liquidated approximately 115,000 BTC, valued at an estimated $12.7 billion. This event marks the most significant outflow of coins from large-player wallets since July 2022. Data from CryptoQuant indicates that over the past thirty days, whale reserves decreased by more than 100,000 BTC, which analysts interpret as a strong signal of risk aversion among these substantial investors. As noted by CryptoQuant on September 5, 2025,
"In the last thirty days, whale reserves have fallen by more than 100,000 BTC, signaling intense risk aversion among large investors."
Market Impact and Analyst Outlook
This substantial sell-off exerted downward pressure on Bitcoin's price, leading it to dip below $108,000. Although the market has since stabilized, hovering in the $110,000-$111,000 range with the cryptocurrency currently trading around $112,104, analysts caution that continued reductions in large investor portfolios could sustain pressure on Bitcoin in the coming weeks. The most pronounced weekly outflow occurred on September 3, when whales moved 97,000 BTC, the highest single-week figure since March 2021. However, this aggressive selling eased somewhat by September 6, with the weekly balance change reducing to 38,000 BTC.
Institutional Counterbalance and Long-Term Trends
Despite the significant whale activity, the market has demonstrated considerable resilience, largely attributed to strong institutional accumulation. Nick Rake, Director of LVRG Research, highlighted this dynamic, stating, "While recent whale sell-offs triggered short-term volatility and liquidations,
institutional Bitcoin accumulation during the same period created a
structural counterbalance." This suggests that corporate purchases and consistent demand from exchange-traded funds (ETFs) are absorbing the supply from large individual holders, preventing a more severe market downturn.
Indeed,
long-term trends for Bitcoin remain largely positive. The recent correction, at approximately 13% from its August historical high, is notably less severe compared to previous market downturns. This underscores a maturing market where major price swings are met with underlying demand. Analyst Dave the wave points to a rising annual average, noting that a year ago it stood at $52,000, is now at $94,000, and is projected to exceed $100,000 next month. Furthermore, experts at investment firm
Tephra Digital have forecast Bitcoin's value to reach between $167,000 and $185,000 by the end of this year or early next year, reflecting an optimistic outlook despite short-term fluctuations.
Sources