In the past two weeks, long-term Bitcoin (BTC) whales have cashed out a remarkable $1.2 billion in profits. According to CryptoQuant, these seasoned investors, often referred to as “old whales,” capitalized on the recent surge in Bitcoin prices to sell coins they acquired at much lower values, making this period an unprecedented profit-taking event in USD terms.

CryptoQuant’s Head of Research, Julio Moreno, emphasized the significance of this activity by comparing it to a similar event in April 2022. During that period, when Bitcoin was trading at $40,000, whales realized $683 million in profits in a single day, amounting to 17,000 BTC. In contrast, the recent two-week period saw profits of 14,000 BTC but with a much higher USD value, highlighting the increased profitability of these recent sales.

Bitcoin whales, typically entities holding at least 1,000 BTC (worth approximately $65 million at current prices), are often institutional investors rather than individuals. CryptoQuant CEO Ki Young Ju noted that many of these sales have likely been executed through brokers, suggesting that the market has not yet fully absorbed the impact of this sell-off. However, he warned that brokers could deposit BTC to exchanges in the near future, potentially affecting market liquidity and prices.

This significant profit-taking activity comes amid an already bearish sentiment in the crypto market. Over the past week, Bitcoin has declined by 3%, exacerbated by substantial outflows from Bitcoin ETFs. In the last two days alone, $300 million has been withdrawn from these funds, adding to the downward pressure on Bitcoin prices.

The actions of these Bitcoin whales are crucial to understanding market dynamics, as their large transactions can significantly influence prices. While the immediate impact of these sales has been muted, the potential for brokers to release these BTC onto exchanges remains a looming threat to market stability. Investors are closely watching these developments, as any large-scale deposit of BTC to exchanges could lead to increased volatility and further price declines.

As the crypto market navigates through this turbulent period, the behavior of Bitcoin whales and institutional investors will continue to play a pivotal role in shaping the market’s direction. Their decisions to realize profits or hold onto their assets will be key factors influencing Bitcoin’s price trajectory in the coming weeks.