Bitcoin Whales' $9B Unrealized Gains Spark Sell-Off Risk

Bitcoin's short-term holder whales have hit a record high in unrealized profits, reaching $9 billion on September 4th. This is according to data from CryptoQuant, which tracks whale profitability since 2016. The $9.07 billion figure represents the largest reading ever recorded for this group.

The short-term holder (STH) whales are defined as wallets holding coins less than six months old, with a cost basis near $69,000. Their breakeven point is closer to the current spot price compared to long-term holders (LTHs). The sensitivity of STH whales to market fluctuations means that even small price movements can lead to selling.

CryptoQuant warned that further BTC price downside may induce selling from STH whales, who are traditionally seen as speculative in nature and more sensitive to smaller market shifts. Binance exchange reserves have also reached a two-year high of 691,658 BTC on September 2nd.