Recent on-chain data reveals a noteworthy trend in the Bitcoin market as seasoned investors, often referred to as “old whales,” have been offloading their BTC holdings to traditional institutional investors. This transfer of ownership underscores the increasing allure of Bitcoin within mainstream financial circles, particularly on Wall Street.
Ki Young Ju, the founder and CEO of CryptoQuant, shed light on this phenomenon through a detailed analysis, focusing on the evolving dynamics of Bitcoin demand and supply across different whale addresses.
The data indicates a notable uptick in demand for Bitcoin from emerging whale entities, coinciding with heightened selling activity observed among established whale addresses.
This observed pattern suggests that long-term holders of Bitcoin may be seizing the opportunity to realize profits amid the current phase of price discovery, characterized by Bitcoin’s surge beyond the $73,000 mark.
Interestingly, similar trends have been observed in previous market cycles. Notably, this pattern emerged in early 2017, coinciding with the onset of the 2017 bull cycle, during which Bitcoin experienced a meteoric rise from $966 in January 2017 to its peak of $19,666 in December 2017.
During the subsequent bull market in 2021, participants witnessed a similar transfer of BTC ownership from old whale addresses to new whale entities, albeit over a shorter period.
However, a noteworthy deviation from this pattern in the current cycle is the composition of the new whale entities, which predominantly comprise traditional institutional investors. This shift can be attributed to the growing acceptance and success of spot Bitcoin ETFs, which have provided Wall Street with exposure to Bitcoin.
In recent developments, spot Bitcoin ETFs have seen a resurgence in investor interest, marked by consecutive daily inflows after a period of sustained outflows.
Despite Bitcoin’s recent surge above $70,000, indicators suggest that the asset may still have room for substantial growth. The ongoing shift in ownership, historically aligned with market peaks, implies potential for further ascent. Moreover, Bitcoin’s daily relative strength index (RSI) remains below overbought levels, signaling potential upside momentum.
Recent data on whale transactions further supports this outlook, with a consolidation in the number of transactions involving significant sums of BTC.
In light of these developments, Bitcoin continues to trade at $70,759, reflecting a modest increase of 1.61% over the past 24 hours. With a positive trajectory in the past week, Bitcoin seeks to regain lost ground, demonstrating resilience amidst market fluctuations.
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.
