Why is Bitcoin not pumping? Whales have sold 500,000 BTC in a year, and the annual increase of Bitcoin will gradually shrink.

According to data compiled by 10x Research, over the past year, Bitcoin's large holders, commonly known as "Whales", have sold more than 500,000 Bitcoins. As Bitcoin gradually becomes a legitimate asset class, it has also become an exit channel for whales. This may be one of the reasons why, despite President Trump’s strong support for encryption, the price of Bitcoin is still hovering at the levels seen at the beginning of the year. Arca's Chief Investment Officer Jeff Dorman believes that Bitcoin's annual growth rate may continue to decrease, turning it into a boring stock, but it will also become a more attractive retirement asset.

Bitcoin whales sold 500,000 Bitcoins in a year.

According to data compiled by 10x Research, over the past year, large holders of Bitcoin, commonly known as "Whales", have sold more than 500,000 Bitcoins, valued at over $50 billion at current prices. This roughly corresponds to the net inflow into these funds since the approval of the American Exchange-Traded Fund (ETF), and is similar to the cumulative scale of $65 billion accumulated by the Bitcoin reserve strategy pioneer MicroStrategy ( over the past five years.

As early as 2020, the research institution Flipside Crypto estimated that among the anonymously owned accounts traceable on the Crypto Assets blockchain, about 2% control up to 95% of the digital assets.

Bitcoin has become a legal asset, providing a way for Whales to exit.

And now, the power dynamics are rapidly changing. Crypto Assets are gradually becoming a legitimate asset class. From ETFs and MicroStrategy, as well as more than a hundred imitators currently, institutions now control about a quarter of the circulating Bitcoin.

Despite the fact that "Whales" have reduced their holdings, ETFs, fund management companies, and other institutions have absorbed nearly 900,000 Bitcoins over the past year. These institutions currently hold about 4.8 million Bitcoins, while the total circulating supply of Bitcoins is approximately 20 million.

But even if institutions bring stability and legitimacy to this asset class, some observers warn that they also provide a long-awaited exit channel for "Whales". If the sentiment in the Crypto Assets market wavers, retail and retirement investors will face the risk.

Hilary Allen, a law professor at the Washington College of Law in the United States and a long-time skeptic of Crypto Assets, believes that:

"For a long time, our goal has been to make Bitcoin an acceptable asset for institutional investors to provide exit liquidity, allowing Whales to cash out."

The essence of Bitcoin is changing, moving towards a mainstream asset class.

Despite President Trump’s strong support for Crypto Assets, the price of Bitcoin still hovers around the levels seen at the beginning of the year.

Arca's Chief Investment Officer Jeff Dorman stated:

"As time goes by, Bitcoin may resemble a dull stock more and more. On average, it is rising every year, but the gains are getting smaller. It is becoming a more attractive retirement asset."

According to data from 10x Research, a mere outflow of 2% and 9% of funds in 2018 and 2022, respectively, triggered a 74% and 64% drop in Bitcoin prices.

However, the situation is slowly changing. Markus Thielen, CEO of 10x Research, believes that the nature of Bitcoin has indeed changed, but he thinks this situation may last for several years, and Bitcoin will ultimately become a mainstream asset class.

This article Why can't Bitcoin pump? Whales have sold 500,000 BTC in a year, and the annual growth rate of Bitcoin will gradually shrink. First appeared in Chain News ABMedia.