Bitcoin Short-Term Whale Profits Hit Record High: $9 Billion Sell-Off Risk Grows

The unrealized profit of large investors who purchased Bitcoin in recent months hit a historical peak of $9.07 billion on September 4.

CryptoQuant reported that the profit accumulated by short-term holder whales in Bitcoin has reached its highest level in a data series dating back to 2016. While this profit has not yet been converted to cash through selling, it has reached a magnitude that could increase potential sell-side supply should price action weaken.

The metric measures the paper profit based on current prices for large investors who bought Bitcoin within the last few months. The total, which climbed to $9.07 billion on September 4, receded to $7.51 billion on September 5 as the price experienced a slight pullback. Despite this, the value remains one of the top five highest levels in the series.

Record Profit Could Turn Into Selling Pressure

It is noted that this group has historically been quick to take profits when prices fluctuate. For this reason, while record-level profits do not mean selling is occurring on its own, they increase the supply that could enter the market in the event of weakness in the Bitcoin price.

All of the top five highest levels in the data series occurred within the last two weeks. This outlook shows that the gains short-term whales have reaped from the rally have reached extraordinary levels, suggesting that the uptrend may face a new test due to its own success. While there is genuine support underlying Bitcoin’s rise, the $9.07 billion in profit accumulated above this support could be tested if the price retreats.