BTC Whales Reach Record Unrealized Profits Amid Price Volatility

New data from CryptoQuant suggests that Bitcoin (BTC) whales have reached record unrealized profits of $9.07 billion, sparking concerns about potential selling pressure on the market.

The spike in profitability is attributed to short-term holder (STH) whales, which are wallets holding coins less than six months old. These investors are known for being more sensitive to price fluctuations and tend to take profits when available.

CryptoQuant warns that further BTC price declines may induce selling from STH whales, as their breakeven point is closer to the current spot price than long-term holder (LTH) whales. The cost basis of STH whales currently sits near $69,000, making them more likely to sell at the first sign of weakness.

Binance exchange reserves are also approaching two-year highs, with 691,658 BTC stored on the platform as of September 2. This increased liquidity may contribute to potential selling pressure if STH whales decide to take profits.