Bitcoin whales are dumping – Is the top in? Profit-taking hits $500M/hour

• Mega whales are cashing out after a decade, while institutions aggressively buy the Bitcoin dip.
• ETF inflows and exchange outflows hint at a looming BTC supply squeeze, despite weakening bullish momentum.

They say whales make waves, but lately, the biggest Bitcoin [BTC] holders have been quietly slipping out the back door. To the untrained eye, it looks like panic.  But dig deeper, and a bigger picture emerges.

These aren’t fresh buyers bailing. Most of these mega-wallets are ancient HODLers, now cashing out after a decade-long ride from $700 to six figures. Meanwhile, institutions and even sovereign buyers are diving in headfirst.

So, who’s really making the smarter move?

Bitcoin “mega” whales: Not capitulation, just cashing out

In their latest X post, analyst Willy Woo revealed that “mega whales” have been gradually reducing their stacks since 2017, even as price climbed from hundreds to tens of thousands.

It’s not irrational behavior; it’s long-overdue profit realization.

Source: Glassnode

Most of these coins were accumulated when Bitcoin traded between $0 and $700. That places these entities among the earliest adopters, now exiting after holding for 8 to 16 years.

This is a textbook example of long-term capital rotation. These are not panic sellers, but disciplined exits by aging capital.

Their selling doesn’t signify a market top, but a changing of hands — from cypherpunks to corporates, from early believers to institutional believers.

Institutions are buying the dip… and draining the supply

Source: SoSoValue

While old hands are cashing out, ETF data tells a different story: fresh capital is flooding in. Over the past month, Bitcoin ETFs have seen consistent weekly inflows, with a recent net inflow of $110.52 million.

Source: Cryptoquant

This uptick in demand comes at a time when exchange netflows have turned sharply negative — over 11.4K BTCs were pulled from exchanges in a single day — showing a growing reluctance to sell.

Coin Days Destroyed also remained muted, suggesting that long-term holders aren’t rushing to offload.

Source: Cryptoquant

The result? A textbook supply squeeze in the making.

Bulls show signs of exhaustion

Bitcoin’s latest rejection near the $106K mark is starting to show cracks in the bullish structure.

The attached chart reveals a steady decline in Open Interest — from above $33.3B to around $33.08B — hinting at traders pulling back rather than doubling down.

Meanwhile, the Funding Rate remained positive but subdued, suggesting no major aggressive long positioning.

Source: Coinalyze

Price remains rangebound, but the absence of rising Open Interest during the rally implies weak conviction. If buyers don’t step in with renewed force soon, this could well mark a local top before deeper downside plays out.