10.1 Billion Dollar Profit and Risks in Bitcoin

Recently, the volatility in the price of Bitcoin (BTC) has attracted the attention of investors, and the profits of short-term Bitcoin whales are also notable. Currently, these whales have accumulated a total of $10.1 billion in unrealized gains. However, this situation also suggests that a profit-taking wave may be on the horizon in the markets.

According to CryptoQuant data, short-term investors consist of addresses that entered the market in the last five months and hold more than 1,000 Bitcoin in assets. This group tends to sell when market fluctuations occur. In recent weeks, they have achieved significant profits due to the influx of cash into exchanges, the government shutdown in the U.S., and a weakening dollar. Those who have been at a loss for months are now in the most profitable position of the bull cycle.

On the other hand, data shared by CryptoQuant shows that $5.7 billion worth of Bitcoin was transferred from short-term investor wallets to exchanges at the beginning of this week. This situation indicates that profit realization has begun, and some analysts believe that such a large profit pool could incentivize some whales to sell, which could create pressure on the market.

From a broader perspective, it is observed that 3.45 million Bitcoin have transitioned from long-term investors to short-term investors during this cycle. This figure is similar to the amount of handover during the 2016-2017 bull run; however, this time the price of Bitcoin is approximately 100 times higher. While demand for purchases seems strong at the moment, if short-term whales make mass sales, the $10.1 billion in profits could quickly turn into selling pressure.

Therefore, analysts emphasize that whale movements may play a decisive role in the Bitcoin price trend in the coming weeks. Investors need to conduct careful analysis considering these situations and closely monitor market movements.