Demand Test: Bitcoin Whales Earn Record $1.2 Billion, Ethereum Holders Return to Profitability

New Bitcoin whales realized over $1.2 billion in profit in just three days following the recovery in the price of the first cryptocurrency. This has become the largest profit-taking event for this cohort in the entire history of observations, stated CryptoQuant.

The peak occurred on August 20 — about $614 million, which also became an absolute daily record, the statement said.

Analysts noted that profit-taking began after Bitcoin returned above the realized price of short-term whales. This indicator was about $68,900, while on August 23, Bitcoin was trading near $77,700 — approximately 12.8% above the average cost basis of this cohort.

For several months, large investors who recently purchased Bitcoin were at or below their purchase price. The market recovery changed the situation, opening up the opportunity for them to realize profits, the experts added.

CryptoQuant called the current situation an important test for Bitcoin's demand. If the asset can hold above the cost basis of the whales, and profit-taking volumes normalize, this may indicate the ability of new demand to absorb the supply.

At the same time, continued high seller activity and the first cryptocurrency falling back below this level could turn the rally into a "break-even exit," where investors who were previously at a loss will increase selling pressure on the price, CryptoQuant emphasized.

What's Happening with Ethereum?

Against the backdrop of the Ethereum rally, large holders of the asset have also returned to the zone of unrealized profit, noted CryptoQuant analyst using the pseudonym Darkfost. He stressed that the current profitability level remains relatively low and, in his opinion, is not capable of creating significant pressure on the asset's price.

According to the analyst, the unrealized profit/loss ratio for different cohorts is:

• 1,000-10,000 $ETH — 0.075;
• 10,000-100,000 $ETH — 0.16;
• more than 100,000 $ETH — 0.38.

Note, the ratio reflects the average percentage of "paper" profit for Ethereum holders relative to their purchase price: the higher the value, the greater the plus for investors.

According to Darkfost, the increase in profitability for large investors may be a more positive signal for Ethereum, as it improves their sentiment. The analyst reminded that in June, whales were in significant unrealized loss, while since then the asset has grown by more than 65%.

Recall that earlier, Coinbase CEO Brian Armstrong predicted Bitcoin could reach $400,000 by 2030.