Bitcoin (BTC) is facing heightened volatility after whales unloaded between 112,000 and 115,000 BTC, valued at nearly $12.7 billion, in August. According to on-chain data from CryptoQuant, this represents the largest whale distribution since July 2022, adding significant selling pressure to the market.
The sell-off came from large holders controlling between 1,000 and 10,000 BTC. These whales had accumulated more than 270,000 BTC between April and August, only to reverse course and flood the market with supply.
This aggressive profit-taking pushed Bitcoin prices below $109,000, marking a 5.5% monthly decline and breaking a four-month winning streak.
Despite the heavy distribution, recent activity suggests selling pressure may be cooling. Whale movements peaked on September 3, when more than 95,000 BTC changed hands in a single week, the largest shift since March 2021. However, the pace has since slowed to around 38,000 BTC per week as of September 6.
Analysts caution, however, that a looming “head and shoulders” pattern and an unfilled FVG at $114,000 could precede another sharp downturn. If this resistance zone triggers fresh selling, BTC could slide back toward $106,000, testing critical support levels.
While whales have been reducing exposure, institutional investors appear to be absorbing some of the pressure. Corporate buyers and ETF inflows have provided what analysts call a “structural counterbalance” to whale dumping.
Nick Ruck, Director at LVRG Research, notes that ETF-driven demand and corporate accumulation could stabilize Bitcoin even amid aggressive whale selling.
However, the broader outlook remains tied to macroeconomic conditions, especially the Federal Reserve’s upcoming September 17 meeting, where interest rate decisions could significantly sway liquidity in risk markets.
With Bitcoin still down about 11% from mid-August highs near $124,000, traders remain split: will institutional buying outweigh whale pressure, or is a deeper crash on the horizon?
Cover image from ChatGPT, BTCUSD on Tradingview
