After Bitcoin reached its all-time high of $111,880 on May 22, 2025, major holders known as “Bitcoin whales” began reducing their positions significantly. This behavioral shift suggests a strategic profit-taking approach, raising questions about the market’s next move. The pattern marks a defining moment where Bitcoin whales reduce holdings amid evolving investor dynamics.
Whale Behavior Signals Market Turning Point
Glassnode’s on-chain data shows that wallets holding over 10,000 BTC have entered a distribution phase. Their wallet flow metric, which tracks net accumulation, dropped to approximately 0.3, indicating increasing sell-side pressure from whales. These high-net-worth investors are offloading their holdings gradually, likely to lock in gains after months of upward momentum.
From April to May, over 3.21 billion USDT worth of BTC was sold by newer whales (who bought in at ~$91,000), realizing a return rate of 121%, according to data aggregated on Followin. These sellers represent short- to mid-term opportunists capitalizing on the bullish trend.
Sharp Drop in Whale Wallets Holding 1+ BTC
Beyond the mega-whales, smaller whale cohorts are also showing signs of distribution. Over 5,000 wallets holding 1+ BTC have exited the market over the past two months. This decline reflects waning retail confidence or possibly a reallocation into altcoins or fiat as volatility increases.
Institutions Step Up as Bitcoin Whales Reduce Holdings
Despite whale outflows, institutions are entering the space with fresh capital. Spot Bitcoin ETFs recorded over $211 million in net inflows, primarily led by BlackRock and Fidelity. Meanwhile, MicroStrategy (now rebranded as Strategy) added another 4,000 BTC to its treasury, increasing its total holdings to 580,250 BTC with an average acquisition cost of $106,000.
These inflows are crucial in offsetting whale sales and maintaining price support near the $109,000 level. The redistribution from whales to institutions could create a more stable investor base, reducing short-term volatility in the long run.
Whale Activity Shows Rotation, Not Collapse
It’s important to note that this isn’t a mass exit. Instead, it’s a rotation. Whales who bought at sub-$100K levels are de-risking, while newer entrants, both retail and institutional, are absorbing supply. As reported by Followin, certain dormant whale wallets have even reawakened, distributing BTC for the first time in over 7 years, signaling strategic exits rather than panic selling.
Some analysts interpret this activity as a healthy rebalancing, reflecting a maturing market. Liquidity has remained stable, and trading volumes on major exchanges have not shown signs of distress.
Market Outlook: Cooling or Coiling?
The current phase may represent a cooldown rather than a reversal. Technical indicators still point to structural strength, and support from ETFs and corporate buyers suggests that any dip could be met with buying pressure. If the price consolidates above $105,000, Bitcoin may coil for another breakout.
However, if institutional appetite wanes and macro conditions worsen, continued whale distribution might lead to short-term corrections. As always, tracking how Bitcoin whales reduce holdings can provide crucial clues to the market’s next move.
