Whale Watching: $9B Unrealized Gains Loom Over Bitcoin
CryptoQuant data shows that Bitcoin short-term holder (STH) whales are sitting on a record $9.07 billion in unrealized profit, the highest level since the metric began tracking in 2016.
These STH whales have held their BTC for 155 days or less and are more likely to sell when prices move sharply.
CryptoQuant analysts warn that the profits could quickly turn into selling pressure if Bitcoin falls, as was seen on September 5 when STH whale profits dropped to $7.51 billion after BTC fell by just under 2%.
‘Unrealized profit at that scale is exposure,’ said an analyst, emphasizing the risk of sudden selling pressure.
The analysts note that strong buying will be needed to absorb the extra supply if STH whales start taking profits, and spot demand becomes crucial for Bitcoin’s next move. Spot Bitcoin ETFs have recorded around $1 billion in inflows over the past three days, suggesting institutional buyers are still adding BTC.