Bitcoin Whales Hold Tight: Is the Bull Run Still Alive?
Bitcoin’s Stagnant Performance Sparks Questions About the Bull Run
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Bitcoin’s price hasn’t exactly been on a rocket ship ride in 2024, despite a strong start. After a period of consolidation, trading between $50,000 and $70,000, the cryptocurrency’s lackluster performance has left many wondering if the bull run is over. Analysts and experts are debating the current cycle, with some predicting a continuation of the upward trend.
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CryptoQuant CEO Ki Young Ju has offered an intriguing on-chain perspective that sheds light on the situation. He revealed that Bitcoin whales, those holding significant amounts of the cryptocurrency, have been surprisingly tight-fisted this cycle.
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Whales Hold Back: A Record-Breaking Trend
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Based on the Realized Profit Ratio by Balance Cohort metric, which analyzes the ratio of coins sold at a profit by different investor groups, CryptoQuant has discovered that Bitcoin whales have taken the least amount of profits compared to previous bull cycles. This data suggests that these large investors are not rushing to sell, indicating a potential belief in Bitcoin’s long-term potential.
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Traditionally, a high Realized Profit Ratio for whales signals a sell-off, as they believe the price has peaked. However, the current low ratio indicates a lack of profit-taking, suggesting that investors are holding onto their assets and possibly expecting further price gains. This could point towards a continuation of the bull run.
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A Return of ‘Dolphins’
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Another positive sign comes from Santiment, which reported a steady increase in Bitcoin ‘Dolphins,’ investors holding between 0.1 and 10 BTC. These smaller investors, who primarily sold for profit in the first half of the year, are now returning to the market. This increase in addresses holding between 0.1 and 1 BTC (25,671 more addresses) and 1 and 10 BTC (approximately 4,000 more addresses) suggests a renewed interest in the cryptocurrency.
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The influx of these ‘Dolphins’ could fuel a positive trend in the Bitcoin price over the coming months, suggesting a growing belief in the market’s long-term prospects.
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Looking Ahead: A Bullish Outlook?
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The on-chain data suggests that Bitcoin whales have faith in the cryptocurrency’s future, and smaller investors are returning to the market. This suggests that the bull run may not be over, and Bitcoin’s upward trend could resume. However, it’s important to remember that market volatility is a constant factor, and predictions should be taken with a grain of salt.