An exchange on X has pushed a pointed question to the foreground: are veteran Bitcoin whales distributing into strength as part of a rational, late-cycle rotation, or is the bid under Bitcoin’s core thesis quietly eroding?
Former Bitwise exec Jeff Park set the frame with a reminder that OG wallets carry outsized informational weight: “OGs are a special group of investors. They saw something nobody saw before and took early chance, in size.” If that cohort is actively trimming, he argued, the motivations are unlikely to be banal. The risks they’re reacting to “must be: non-consensus, improbable, and existential.” Park also urged readers to consider Jordi Visser’s “Bitcoin’s Silent IPO,” a lens that treats this phase as a quiet redistribution of ownership rather than a simple blow-off.
This is such a great read-
In addition, if OG sellers are maximally profit-taking, the question is: why specifically now beyond current gains and enhanced liquidity, but also future expectations?
OGs are a special group of investors. They saw something nobody saw before and… https://t.co/PRbxYDrL5v
— Jeff Park (@dgt10011) November 2, 2025
OG Sales, Bitcoin ETF Rotation, And The Battle For Identity
Bloomberg’s senior ETF analyst Eric Balchunas largely accepted the premise that early holders are the ones selling—“Agree OGs are the ones selling (vs ETF paper btc conspiracy theories) and agree they saw something no one else did… and deserve the rewards”—but he pressed on the post-sale belief that ultimately matters. “The q is do those OGs (after taking profits) still think btc is a store of value and debasement hedge? If so, no problem. If not, then they basically saying it was a ponzi the whole time, which is a problem.”
He later reached for a cultural analogy to describe mainstreaming’s side effects: “It kinda reminds me of when bands in the 90s would sign with a major label and become huge mainstream hits… Yes is the exact same music but it’s somehow different too. Some early fans… turned off.”
Short-term psychology featured as well. As j (@pk9009) put it, round-number gravity and cycle fatigue can be enough to catalyze supply: “I think some of it is it’s over 100k and fear of another long cycle and waiting for more gains again. So take some off the table… Early wallets moving doesn’t inspire confidence in others either. Domino affect can be caused by just one wallet moving.” Balchunas agreed it’s “def something to watch” and openly solicited views from allocators closest to large-holder behavior.
Park then shared three working theses for why trimming now could be rational even without a thesis break. First, opportunity cost toward other “generational ROIs”—“AI in terms of capital or predictions markets in terms of labor,” with “quantum risk” folded into that calculus as “same coin, different sides.”
Second, a payment-layer disappointment and institutional friction: “The big promise post the Blocksize war was Lightning. It hasn’t worked,” coupled with “the rise of privacy concerns (especially for offshore OGs)… as Bitcoin becomes more ‘institutionalized.’”
Third—and “most important”—a demand reflexivity risk across generations: “The whole Bitcoin thesis breaks if the young don’t buy… Because the old will always buy if they know the young will buy now or later, but the young will not buy if ONLY the old buy.” Park’s political shorthand was deliberately provocative: “There is a reason the socialist candidates are not embracing Bitcoin… They have come to the conclusion it hurts them… Bitcoin and Mamdani has to be the same platform for Bitcoin to win, not Bitcoin and Ackman.”
These are my three working drafts-
The first as mentioned is the opportunity cost to invest in other generational ROIs like AI in terms of capital or predictions markets in terms of labor, where I also bucket the “quantum risk” in that category to make the trade off more…
— Jeff Park (@dgt10011) November 2, 2025
From the allocator seat, Bitwise CEO Hunter Horsley emphasized that what looks like distribution can be structured derisking rather than belief abandonment. “We have many clients with immense amounts of Bitcoin. Imo— it’s not that they no longer believe in BTC. It’s more timing and peace of mind.”
For ultra-early holders who are “100–1000x more” wealthy than when they entered, the aim is to reduce the emotional and portfolio whiplash while keeping core exposure: “They expect it will go higher but can also have periods of volatility… They plan to keep holding much / most.”
Tactically, Horsley sees investors “swap spot BTC for ETF for peace of mind around security and to borrow from private bank (vs sell) to tap into the wealth / liquidity,” “work with someone like Bitwise to write call options that generate income,” and “liquidate a portion over time.” His summary was unambiguous: “everyone is the most bullish they’ve been. I think the rotation is mostly some people psychologically derisking.”
We have many clients with immense amounts of Bitcoin.
Imo- it’s not that they no longer believe in BTC. It’s more timing and peace of mind:
They’ve got 100-1000x more wealth. They want to make sure it stays that way. They expect it will go higher but can also have periods of…
— Hunter Horsley (@HHorsley) November 2, 2025
Balchunas welcomed that nuance—“Good to hear… but it’s definitely something to keep an eye on… you need your base for long haul”—and Horsley added, “Well said. Yea the OGs I know are very convicted.” In other words, even if some supply is hitting the market, a meaningful subset of whales appears to be re-platforming exposure onto institutional rails rather than exiting outright.
That leaves a clean decision tree. If the whales taking profits still “think btc is a store of value and debasement hedge,” the market can digest supply as a healthy rotation into broader ownership. If, however, OG distribution coincides with Park’s cultural warning—where younger cohorts disengage and the payment-layer narrative atrophies—then what looks like cap-table maturation could mutate into a sponsorship problem.
Agree. Def something to watch. The q is do those OGs (after taking profits) still think btc is a store of value and debasement hedge? If so, no problem. If not, then they basically saying it was a ponzi the whole time, which is a problem.
— Eric Balchunas (@EricBalchunas) November 2, 2025
For now, the debate sits where Balchunas placed it: keep watching whether the profit-takers stay believers, and whether new buyers step in for reasons that go beyond “number go up.”
At press time, Bitcoin traded at $107,542.
Featured image created with DALL.E, chart from TradingView.com
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