Bitcoin's 2025 Correction: Analyzing the 'Great Redistribution' by Whales

Throughout 2025, the global Bitcoin market experienced a significant price correction, which reached its peak by the year's end. Analyst J.A. Maartun from CryptoQuant characterized this event as the 'great redistribution.' This phenomenon was primarily driven by historic levels of selling activity originating from long-term holders, often referred to as O.G. HODLers.

This period marked a substantial transfer of BTC volumes to new owners. The asset's price fell considerably from its peak above $126,000 in October down to approximately $86,000 by mid-December 2025. Analysts identified three distinct waves of selling throughout the year. These occurred in late 2024/early 2025, a second surge in July 2025, and the final peak of selling pressure in November 2025.

A notable event in July 2025 involved the movement of over 80,000 BTC from an unnamed Satoshi-era investor via the firm Galaxy Digital. At the time, this transaction was valued at more than $9 billion USD. This specific transfer, reportedly linked to estate planning, was successfully absorbed by institutional demand, including purchases made by MicroStrategy. This absorption helped the market find temporary stability near the $108,000 mark.

In total, the volume sold by 'whales' throughout 2025 was estimated to be around 161,294 BTC, equating to roughly $15 billion USD. Interestingly, while these long-term holders acted as net sellers, mid-sized holders, categorized as 'sharks' (owning 100–1,000 BTC), emerged as net buyers. This dynamic clearly signaled a structural shift: the primary distribution was moving from the earliest investors toward newer, large-scale purchasers.

Bitcoin reached its 2025 zenith early in October, surpassing the $126,000 threshold. However, by December 27, 2025, the price had settled around $87,000. This represented a steep decline of over 30% from that October high. Ki Young Ju, the founder of CryptoQuant, observed that such aggressive profit-taking by whales traditionally suggests the potential for deeper corrections to follow.

Institutional players, such as MicroStrategy (which had rebranded to Strategy Inc.), remained deeply engaged in the market. For instance, on December 14, 2025, the company acquired an additional 10,645 BTC at an average cost of $92,098 per coin. By the middle of December 2025, Strategy Inc. held a total of 671,268 BTC, boasting an average purchase price of $74,972. This positioned them for substantial long-term gains, even amidst the short-term volatility.

The whale activity in 2025, facilitated by modern institutional infrastructure including spot ETFs, allowed early holders to cash out their holdings with greater ease than seen in previous market cycles. The lingering question for the market remains whether this massive redistribution signifies the end of the current growth phase and the commencement of a sustained downturn in 2026, or if it was merely a necessary distribution phase preceding the next major upward price movement.