Bitcoin is experiencing profit – taking as “big whales” continue to sell off, which is influenced by multiple factors such as the achievement of high prices, macro – economic conditions, and market sentiment. Here is a detailed analysis:
High Price Realization: Bitcoin reached an all – time high of $111,970 on May 23, 2025. This significant price increase allowed long – term holders, especially the “big whales” who hold a large number of bitcoins, to realize substantial profits. For example, investors who hold 100,000 bitcoins or more took profits for the first time since May 2023 when bitcoin was trading at around $27,500. Such profit – taking behavior is a common market response after an asset reaches a high price.
Macroeconomic Uncertainty: There are macro – economic concerns over Trump’s tariff policies. A US court ruling that many tariffs are illegal has led to treasury yields breaking above 5%, triggering a wave of risk – off sentiment. In such an uncertain macro – economic environment, some “big whales” may choose to sell bitcoins to avoid potential risks and secure profits.
Derivatives Market Overheating: The derivatives market shows signs of overheating, with options open interest hitting an all – time high of $49.4 billion. This indicates elevated institutional activity and increased hedging and speculation. The overheating of the derivatives market may prompt some investors to take profits and reduce their exposure to risk.
Whale Activity Intensifies: Data from Cryptoquant shows that whales now account for almost half of exchange flows. Since May 29, over $1.2 billion has exited US spot bitcoin exchange – traded funds (ETFs), which may be related to the profit – taking behavior of “big whales”. The selling behavior of “big whales” has a greater impact on the market due to the large number of bitcoins they hold, and it may also cause other investors to follow suit and sell, further exacerbating the downward pressure on bitcoin prices.
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