Large, early Bitcoin holders—often called ‘whales’—have sold significant amounts of BTC in recent months, but some analysts view this as a positive development for the ecosystem.
As the price of bitcoin surged above $120,000, several high-profile sales, including a Satoshi-era wallet unloading 80,201 BTC worth $9.6 billion, made headlines. Despite a temporary 4% price dip during these transactions, the market quickly recovered.
Healthy dynamic as new buyers emerge
According to Swan Bitcoin, the largest rotation in bitcoin’s history is nearing completion, with the ‘old guard’ being replaced by institutions and treasury firms. CK Zheng, co-founder of ZX Squared Capital, stated:
“It’s become a different type of order in the future evolution of the Bitcoin process; it’s a healthy way […] for future growth.”
He emphasized that whale selling is not negative because new, conviction-driven buyers are entering the market, reflecting a healthy bull market dynamic.
Institutions now hold significant bitcoin supply
The shift in ownership is part of bitcoin’s natural evolution, according to Zheng.
Data from our treasuries database indicates 219 entities—including ETFs, countries, companies, and miners—now collectively hold 3.6 million BTC, valued at over $419 billion.
This trend demonstrates growing institutional and treasury adoption, further integrating bitcoin into the financial system.
OG whale exits signal market maturity
Ryan McMillin of Merkle Tree Capital noted that the movement of bitcoin from early adopters to institutional holders mirrors gold’s transition into mainstream finance.
He explained that as more conservative entities set asset allocations and rebalance positions, bitcoin’s volatility may decrease, making it more attractive to traditional investors.
Diversification and healthy turnover
Zheng also suggested that some early whales are diversifying into other growth sectors, such as artificial intelligence.
He likened the process to selling property after long-term ownership, noting that asset turnover does not diminish underlying value.
