According to CryptoPotato, a recent analysis by the on-chain intelligence platform CryptoQuant found that due to the continued accumulation of digital assets, the total Bitcoin (BTC) holdings of large entities have grown to levels not seen since July 2022. According to CryptoQuant's weekly crypto report, the BTC holdings of these entities have grown from 3.694 million in December 2022 to the current 3.964 million. Analysts said that the expansion of holdings by large investors is related to the rise in BTC prices because it indicates an increase in investment demand. Some of the large entities accumulating BTC are new spot Bitcoin exchange-traded funds (ETFs), excluding Grayscale's GBTC. They have become the main source of demand for leading digital assets and currently hold about 300,000 BTC. Although some large entities have sold assets in large quantities, selling up to 300,000 BTC a day in recent days, new ETFs and other major holders have absorbed BTC. At the same time, the selling activity of Bitcoin miners remains low. CryptoQuant analysts found that miners have been selling less than 100 BTC per day in the past few weeks, a far cry from the more than 1,000 BTC seen in November-December 2022. On the other hand, short-term BTC holders, i.e. traders, have begun selling assets to realize high profits when BTC breaks through $50,000. As BTC crossed the $50,000 mark, the unrealized profit rate for this group of investors rose sharply, although it is still halfway to the extreme level. The current unrealized profit rate of 22% may signal a price pullback at around 40%, as traders selling at high profit rates has historically triggered price declines. If the unrealized profit rate falls below its 30-day moving average, it may also trigger a price pullback. At the same time, the main risk of BTC selling may come from short-term Bitcoin holders and derivatives markets, as high funding rates make new long positions expensive.

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