Following rising tensions in the Middle East, Bitcoin’s price dropped by about $4,000 on October 1. However, an analysis of Bitcoin’s unrealized profit suggests that large Bitcoin holders, known as “whales,” are not yet making enough profit to sell off their assets, according to Ki Young Ju, founder of CryptoQuant.
Profit Analysis of Bitcoin Whales
In an October 2 post, Ki Young Ju explained that newer Bitcoin whales, who have held their assets for less than five months, would only see a 1% profit if they sold their Bitcoin at current prices. Older whales, who have held onto Bitcoin for over five months, are in a better position with an unrealized profit ratio of 1.27, but they still haven’t seen large gains in this market cycle.
Ju believes that these whales are unlikely to sell their Bitcoin until more money from retail investors flows into the market. This would raise prices and give large holders a better chance to cash out with bigger profits.
Summary Review:Despite the recent drop in Bitcoin’s price, large holders, or whales, are not likely to sell off their assets just yet. Both newer and older whales haven’t seen enough profit to justify selling. Until retail investors inject more liquidity into the market, pushing prices higher, these big players are expected to hold onto their Bitcoin.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
