Bitcoin correction looms: whales realize $4 billion profit!

Bitcoin correction looms: whales realize $4 billion profit!

On August 31, 2025, crypto analysts reported a notable trend among Bitcoin whales. Recently, these investors have achieved $4 billion in realized profits, which is a record level. This profit-taking could indicate strong selling pressure and brings older coins back into circulation.

Historically, such moves are often associated with local highs, indicating a possible correction in the Bitcoin market. Additional analysis shows that the Coin Days Destroyed (CDD) ratio has increased, indicating increased activity from long-term holders (LTH). These investors lock in profits when the market is strong and distribute their coins to younger buyers who are more vulnerable to setbacks.

The importance of the CDD and price volatility

The rise in the CDD indicator suggests not only an increase in movements in long-term coins but also impending price volatility. According to recent reports from Cointelegraph, there was a significant increase in CDD, which measures the weight of Bitcoin transactions. This comes in a context where, on March 8, the US government transferred 49,000 Bitcoin seized from the Silk Road case, worth about $1 billion.

It is noteworthy that the Bitcoin price fell below $22,000 during this transfer. For traders, this means that they need to prepare for possible upcoming price corrections. In the last 24 hours, around 5,000 BTC worth around $100 million were also withdrawn from exchanges without causing a significant impact on the Bitcoin price. A transfer of $215 million to Coinbase has also had little impact so far.

Market conditions and outlook

Bitcoin’s stock-to-flow ratio has risen to 3.18 million, reinforcing the scarcity narrative. Such a high value implies supply constraints relative to issuance, which has historically been considered a bullish signal. However, extreme metrics can also exaggerate optimism, especially in times of aggressive distribution.

Despite Bitcoin's solid fundamentals, there are currently signs of the need for near-term caution. The same data suggests that just under 20% of seized BTC was transferred to exchanges, posing the risk of increased selling pressure. Currently, BTC/USD is trading above the support area between $21,500 and $21,950, which is encouraging for buyers. Further confirmation is expected from consecutive daily closes above this support area.

Overall, market developments will remain exciting in the coming weeks and investors should monitor the situation closely to assess possible corrections. Key factors such as selling pressure from whales and the purchasing power of long-term investors will determine how the Bitcoin price will perform.

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