Bitcoin whale banks $11.6M profit as BTC holds above $81,000

Lookonchain flagged addresses 0x5FA and 0x237 as possibly belonging to the same trader, with both closing long positions for a combined $11.6 million profit.

The exact entry price and position size were not disclosed, though the timing aligns with bitcoin's roughly $20,000 climb from $58,000 to above $81,000 on Aug. 25 — a rally of more than 25 percent over the holding period. BitMEX co-founder Arthur Hayes argued the same day that the U.S. Treasury's expanded bond buyback program marked the start of a fresh bull market for bitcoin, a thesis that dovetails with the exact window this whale held its position. The simultaneous exit by both wallets suggests coordinated action rather than independent decisions.

The push through $80,000 came as $225 million in short positions were liquidated across crypto exchanges within 10 minutes, a cascade that accelerated the move. Some large holders have used the run-up to lock in gains after months of sitting on paper losses, given bitcoin traded well below $70,000 for much of this year. Others have continued adding to positions, betting the move higher still has room to run. The whale's exit adds to a pattern of profit-taking that has accompanied each leg of the rally.

Whether the wallet action represents smart money calling a local top or a trader taking disciplined profit after a two-month hold will become clear in the coming weeks. The next few days will determine if $80,000 holds as new support or if profit-taking pressure follows the aggressive short squeeze.

Short squeeze fuels the $20,000 rally

The liquidation cascade that pushed bitcoin through $80,000 trapped traders who had bet on the downside. Data shows the $225 million in short liquidations occurred within a 10-minute window, a compression that can amplify price moves. This dynamic has been a recurring feature of bitcoin's recent rally, with each leg higher triggering fresh waves of forced buying. Bitcoin's third quarter has been one of its strongest since 2021, with price action in the back half of August doing much of the work. The Q3 performance stands out against a year that saw bitcoin trade well below $70,000 for extended stretches.

Can $80,000 hold as support?

The next few days will be crucial as retail traders and institutions watch whether $80,000 consolidates as a new support level or whether the short-squeeze momentum gives way to profit-taking pressure. Fears of quantitative easing also loom on the horizon, potentially affecting bitcoin price movements. Hayes and other macro voices argue that Treasury liquidity dynamics could push BTC toward six figures, and the coming days should show whether whale exits like this one are the exception or the start of a broader trend. If other large holders follow this whale's lead and close their own positions, that could accelerate price swings and test support zones that have held steady during the recent rally.

This article is for informational purposes only and does not constitute investment advice.