Whales Rebalance Crypto Markets Following Tax Events: News from TradingView

Cryptocurrency Markets Correct as ‘Whales’ Take Profits; Bitcoin Slides Below $115,000

August 18, 2025

Global cryptocurrency markets underwent a significant correction overnight, sending both Bitcoin (BTC) and Ethereum (ETH) to critical price levels. The downturn is widely attributed to large-scale profit-taking by major cryptocurrency holders, commonly known as ‘whales.’

Bitcoin experiences Price Drop Amidst Whale Activity

Bitcoin’s value dipped below $115,200, representing a more than 2% decrease within the last 24 hours. This adjustment occurred shortly after reaching a new all-time high of $124,171. Data from cryptocurrency analysis firms indicates a notable increase in the Exchange Whale Ratio, which suggests enhanced selling pressure from substantial investors.

This key indicator assesses the proportion of incoming exchange flows represented by the ten largest transactions. simultaneously, increased trading activity from individual investors emerged, with many capitalizing on the price decline to enter the market. Trading volume surged by over 30% in the past day,reaching $61.65 billion.

Ethereum Follows Bitcoin’s Descent

Ethereum mirrored Bitcoin’s trend, declining by over 6% from its intraday peak of $4,239. This drop also coincided with substantial liquidations from large wallets, paralleling the behavior observed with Bitcoin. The overall crypto market experienced approximately $350 million in liquidations over the 24-hour period, with $236 million originating from long positions.

Market Liquidation and Open Interest

The surge in liquidations occurred alongside a slight increase in Bitcoin’s Open Interest (+0.15%), signaling the establishment of new short positions. The BTC long/short ratio also reflected this shift, with the share of short positions rising from 50% to 57% during the session.

Here’s a snapshot of key market metrics:

Metric	Value	Change
Total Market Capitalization	$3.87 Trillion	-3.83%
Daily Exchange Volume	$168.61 Billion	+38.05%
Bitcoin Dominance	59.1%	–
Fear and Greed Index	56	-1

Did You Know? The ‘Whale Ratio’ is a crucial metric for gauging market sentiment and potential price movements, as large holder activity often precedes significant swings.

analyst Perspectives on Future Market Movement

trader Michaël Van de Poppe identifies $120,000 as a pivotal level for Bitcoin to regain bullish momentum. Meanwhile, analyst Wolf believes the current Ethereum correction doesn’t negate its longer-term upward trajectory, maintaining a forecast of $5,000 per ether in the near future. Investors are closely observing technical levels and the market’s response to the selling activity of major wallets.

Understanding Cryptocurrency Market Corrections

Market corrections are a normal part of the investment cycle, even within the volatile world of cryptocurrencies. They often arise from a confluence of factors, including profit-taking, macroeconomic conditions, and shifts in investor sentiment. While corrections can be unsettling, they frequently enough present opportunities for long-term investors to accumulate assets at more attractive price points.

Pro Tip: Diversification can act as a buffer during market downturns. Consider spreading investments across multiple cryptocurrencies and asset classes to mitigate risk.

The increasing institutional investment since 2023, documented by reports from Fidelity Digital Assets, has also influenced market dynamics.Fidelity Digital Assets. As institutional players become more involved, market corrections can be amplified due to larger trading volumes.

Frequently Asked Questions about Bitcoin and Ethereum

• What is a ‘whale’ in cryptocurrency? A ‘whale’ refers to an individual or entity that holds a significant amount of a particular cryptocurrency, capable of influencing market prices through their trading activities.
• what causes a cryptocurrency market correction? Corrections can be triggered by profit-taking from large holders,negative news events,macroeconomic factors,or broader market sentiment.
• What is the Exchange Whale Ratio? It measures the proportion of incoming exchange flows represented by the ten largest transactions, indicating potential selling pressure from major investors.
• Is now a good time to buy bitcoin? Whether now is a good time to buy depends on your individual investment strategy and risk tolerance. Consider consulting a financial advisor.
• What is Open Interest in Bitcoin futures? Open Interest represents the total number of outstanding Bitcoin futures contracts, providing insights into market speculation and liquidity.

Is this market dip a temporary setback, or a sign of a larger trend? Share your thoughts in the comments below!

How do tax events specifically influence the selling behavior of large cryptocurrency holders (“whales”)?

Understanding Whale Activity & Tax-Related Sell-offs

Large cryptocurrency holders – frequently enough referred to as “whales” – frequently trigger notable market movements. A recurring pattern observed on platforms like tradingview is increased selling pressure following major tax events. This isn’t necessarily indicative of a bearish trend, but rather a strategic rebalancing of portfolios to cover tax liabilities. Understanding this dynamic is crucial for both seasoned crypto investors and newcomers navigating the volatile digital asset landscape. Key terms to understand include crypto tax implications, whale wallets, and market capitalization.

Why Tax Events drive Whale Selling

Tax regulations surrounding cryptocurrency vary significantly by jurisdiction. However,a common thread is the requirement to report capital gains realized from crypto transactions. When tax deadlines approach (like April 15th in the US, or quarterly estimated tax payments), whales often liquidate portions of their holdings to generate fiat currency for tax payments.

Here’s a breakdown of the key drivers:

Capital Gains Tax: Selling crypto assets held for over a year typically results in long-term capital gains tax, while shorter-term holdings are taxed at ordinary income rates.

Avoiding Penalties: Failure to pay taxes on crypto gains can lead to significant penalties and legal issues.

Portfolio rebalancing: Tax-loss harvesting – selling losing assets to offset gains – is another common strategy employed by whales.

Liquidity Needs: Even without tax obligations,whales may need to convert crypto to fiat for other expenses or investment opportunities.

identifying Whale Rebalancing on TradingView

TradingView provides several tools to help identify potential whale activity and anticipate tax-related sell-offs. Analyzing on-chain data and order book activity is paramount.

Key TradingView indicators to Watch

Volume Spikes: A sudden surge in trading volume, particularly on exchanges known to be frequented by whales (like binance, Coinbase, Kraken), can signal increased selling pressure.

Order Book Depth: Monitoring the order book for large sell orders clustered around specific price levels can indicate whale distribution. Look for “iceberg orders” – large orders broken into smaller chunks to avoid impacting the market price.

Exchange Flows: Tracking the flow of crypto to exchanges (indicating potential selling) versus from exchanges (indicating potential buying) provides valuable insights. Platforms like CryptoQuant offer detailed exchange flow data integrated with TradingView.

Whale Alert Notifications: Setting up alerts for large transactions moving to exchanges can provide early warning signs of potential sell-offs.

Heatmaps: Visualizing trading activity with heatmaps can reveal areas of concentrated buying or selling pressure.

Historical Examples & Case Studies

Several instances demonstrate the correlation between tax events and whale selling.

Q1 2024 Sell-off: Following the US tax deadline in April 2024, Bitcoin experienced a notable price correction as whales liquidated holdings to cover capital gains taxes. TradingView charts clearly showed increased selling volume during this period.

Year-End 2023 Rebalancing: December 2023 saw a similar pattern, with whales adjusting their portfolios before the end of the tax year.

Germany’s Tax Regulations (2023): The implementation of stricter crypto tax regulations in Germany in 2023 led to a noticeable increase in selling pressure from German-based whale wallets.

Impact on Market Dynamics & Investor Strategies

Whale rebalancing can create short-term volatility, presenting both risks and opportunities for other investors.

Short-Term Volatility & Price Corrections

The increased selling pressure from whales can lead to temporary price declines. This is particularly pronounced for less liquid altcoins, where a single large sell order can have a disproportionate impact. Market volatility is a key consideration.

Opportunities for Accumulation

Price dips caused by whale selling can present opportunities for long-term investors to accumulate crypto assets at discounted prices.This strategy, known as “buying the dip,” requires careful risk management and a long-term investment horizon.

Hedging Strategies

Investors can mitigate the risk of whale-induced price drops by employing hedging strategies, such as:

Stop-Loss Orders: Automatically sell assets if the price falls below a predetermined level.

Futures Contracts: Shorting crypto futures can profit from price declines.

* Stablecoins: Converting