Bitcoin is undergoing a quiet yet dramatic power shift. Long-term crypto whales are selling hundreds of thousands of coins, while institutional players such as ETFs and corporate treasuries are stepping in. That affects not only who owns the coins, but also how Bitcoin performs in the market.
Why are Bitcoin whales selling now?
The $2.1 trillion Bitcoin (BTC-USD) market is changing due to a covert transfer of power.
Demand from institutional players like ETFs, corporations, and asset managers is nearly matching the steady stream of sales by long-standing whales, such as miners, offshore funds, and anonymous wallets.
As a result, volatility is decreasing, Bitcoin’s position in the investment landscape is changing, and it is having difficulty breaking out of its record high of about $110,000.
The largest digital currency has been trapped in its trading range for months, despite a flurry of bullish headlines, including corporate treasuries embracing Bitcoin and the Trump administration’s full-throated crypto endorsement.
According @EmberCN, the Bitcoin OG whale has transferred a total of 40,000 BTC from four addresses today, each originally holding 10,000 BTC. The current market value of the moved funds is approximately $4.35 billion. These coins were acquired at around $1.65 per BTC, reflecting… https://t.co/cDXNj79RE7
— Wu Blockchain (@WuBlockchain) July 4, 2025
How are institutions reshaping Bitcoin’s future?
As institutions increase their purchases, long-dormant whales have been reducing their holdings beneath the surface.
This change is progressively changing Bitcoin’s reputation as a high-octane trade to a slow-burn allocation.
According to data compiled by 10x Research, over 500,000 Bitcoins, or more than $50 billion at current prices, have been sold off by large holders, or Bitcoin whales, over the past year. That is about the same as the net inflows into the US exchange-traded funds, which have been extremely successful since they were approved, as per a report by Bloomberg.
Many of these whales have roots in the early cycles of Bitcoin’s trading, when it was much lower than it is now. Whales sometimes do more than just sell; they also exchange tokens for stock market-related deals, avoiding the open market.
The base is churning, according to Edward Chin, a co-founder of Parataxis Capital. Whales converting their Bitcoin into equity exposure through in-kind contributions of Bitcoin into financing transactions linked to public markets appears to be a less discussed driver and a possible cause of the churn and rising network activity.
One of the most alluring features of Bitcoin for many traders seems to be dampened by that, which seems to be happening already.
The BTC Volatility Index, a closely monitored indicator of price fluctuations, has dropped to its lowest point in roughly two years, according to Deribit. The 30-day forward-looking annualized expectations of volatility are tracked by the gauge.
How do the experts weigh in?
Markus Thielen, CEO of 10x Research, stated that this could continue for years. Bitcoin will eventually become a 10%–20% asset, so it’s more of a slow grind. Bitcoin’s nature actually shifts.
According to longtime cryptocurrency skeptic Hilary Allen, a law professor at American University’s Washington College of Law, “the goal has always been to make Bitcoin a palatable asset for institutional investors to provide exit liquidity in volume so the whales could cash out.”
According to Jeff Dorman, chief investment officer at Arca, “Bitcoin is probably more like boring dividend stock over time.” On average, it increases annually, albeit by a decreasing amount. It becomes a more alluring asset for retirement.
However, the image is not complete. Not all whale activity is evident, and Bitcoin may soon prove to be extremely volatile, particularly if a new market catalyst appears.
Fred Thiel, CEO of Bitcoin miner MARA Holdings Inc., which has not yet sold any of its Bitcoin holdings, stated, “We are approaching a point where the market is hitting its peak.” “But in my opinion, the market dynamics of today are completely different.”
Taking everything into account, the shift from anonymous whales to institutional allocators could potentially sustain the current market dynamics in the long run.
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