Heavy token unlocks worth $453 Million and Bitcoin’s $108,800 cost-basis zone will shape September’s crypto news outlook.
The crypto market entered September with weakness. The total market cap slipped by almost 2% in the last 24 hours, bringing it down to $3.81 Trillion.
Just weeks ago, traders were watching the $4.1 Trillion mark. That now feels far away. At the same time, large investors known as crypto whales realized big profits, raising new doubts.
This mix of gloomy crypto news and profit-taking has traders wondering whether this is just a cooling phase or if bigger risks are on the way.
The first sign came from whale wallets. Data shows crypto whales realized $650 Million in profits, the biggest spike in more than four weeks.
In simple terms, realized profit means whales sold coins they had been holding at a price higher than their cost. They locked in those gains.
When whales take profit, it often weakens short-term momentum. Smaller traders are left questioning whether to sell as well or wait. This does not guarantee a deeper fall, but it makes the market more uncertain.
At the same time, money supply signals add weight. The U.S. M2 money supply is now at $22.12 Trillion, a record level.
M2 measures how much money exists in the economy, including cash, checking deposits, and savings accounts. More M2 usually means more money is available.
But right now, much of it is not reaching crypto. It is moving into safer places, leaving less fuel for Bitcoin and altcoins. This helps explain why rallies fade even when buyers appear.
Bitcoin’s decline has been sharp but not extreme. It has dropped -13% from its recent highs. By comparison, the average correction in past cycles has been about -37.5%. That means there is still room for more downside without breaking the long-term uptrend. In other words, the market is cooling but not collapsing.
The Bitcoin MVRV percentile also supports this point. MVRV compares the current price of Bitcoin to the average cost basis of all holders.
A high percentile means the market is overheated, while a low percentile means it is undervalued. Right now, Bitcoin sits near 39%, a middle ground that shows balance.
Long-term holders remain steady. Those who have held Bitcoin for over three years are sitting on almost no losses. These strong hands are less likely to sell during dips, reducing the chance of panic. That is another reason why the drawdown so far looks manageable.
Even with balanced on-chain signals, risks remain. One of the biggest short-term risks is token unlocks. More than $453 Million worth of tokens will unlock this week. Unlocks add new supply to the market, which often increases selling pressure.
Another critical risk is Bitcoin’s cost-basis zones. A large group of coins was last moved around $108,800, making this a key support level. If Bitcoin closes below that zone, the next important support sits at $101,000. Holding above $108,800 is important to avoid a deeper drop.
These levels, along with whale profits and the latest crypto news about liquidity and token unlocks, will decide how September plays out.
Whales locking in $650 Million of profits, the U.S. money supply not flowing into crypto, and upcoming token unlocks all explain why September has started with gloomy crypto news. Yet the broader cycle is still in place.
A 13% correction is far below historical averages, MVRV shows no overheating, and long-term holders remain steady. Traders should watch the $108,800 cost-basis zone and the new token supply closely. The market has weakened, but it is not in danger yet.
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