Well-known crypto analyst Scott Melker, better known as The Wolf of All Streets, sparked a lively discussion in the crypto community by stating that many early bitcoin investors are losing faith in the cryptocurrency and are actively closing their positions. In a post on platform X, Melker noted, "Many of the most ardent early whales have shown that their faith has wavered and are selling at market." In his opinion, bitcoin, created as a hedge against the traditional financial system, has been "captured by the very people it was supposed to protect against."
These words came amid significant market movements. For example, an early investor sold 80,000 BTC through Galaxy Digital, one of the largest deals in cryptocurrency history. Such actions underline the growing trend of profit-taking among the first bitcoin holders.
Melker's statement elicited mixed reactions. Some analysts and investors disagreed. Mike Alfred, founder of Alpine Fox, emphasized that selling decisions are often linked to personal circumstances rather than a loss of faith in the asset or its protocol. "People make decisions for many reasons unrelated to bitcoin itself," he noted.
Dave Weisberger pointed out the paradox of the situation: mass bitcoin adoption inevitably requires the involvement of traditional institutions, which contradicts the original idea of decentralization. "There is no path to a bitcoin standard without transferring assets from early holders to major organizations," he stated.
At the same time, Matt Hougan, chief investment officer at Bitwise Invest, remains optimistic, calling bitcoin "revolutionary." He emphasized that it is the first global money secured not by the state but by logic and community. Crypto Mags analyst added, "Bitcoin is meant for everyone, including governments and Wall Street."
The growing interest of institutional investors in bitcoin remains a crucial factor. According to Glassnode, even amid a price correction from $123,000 to $116,000, large players continued to accumulate positions, demonstrating confidence in the asset's long-term value. American spot bitcoin ETFs recorded significant inflows, highlighting a shift in sentiment among institutions compared to the panic at the beginning of 2025.
However, actions by early investors such as Willy Woo and PlanB confirm Melker's words. Woo recently reported selling a significant portion of his bitcoins, and PlanB switched to spot bitcoin ETFs in February for easier asset management. These steps reflect a pragmatic approach to profit management amid record unrealized profits of $1.2 trillion accumulated by bitcoin holders.
The discussion around Melker's words highlights bitcoin's central dilemma: can the cryptocurrency retain its revolutionary essence with mass institutional adoption? While some see this as a betrayal of the initial philosophy, others believe it is an inevitable stage of evolution. Practice shows that ideals and profits often go hand in hand, creating a complex balance between decentralization and market reality.