Bitcoin whales are now selling less than ever before during price peaks.
Their decision to hold could mean they expect further price growth.
This change may impact Bitcoin's market stability in the future.
Large-scale Bitcoin investors known as "whales" are now recording historically low profit-taking levels, which raises concerns about the current economic cycle. Data from Ki Young Ju, CEO of CryptoQuant, points out this change as whales hold onto their Bitcoin instead of selling at recent price peaks. This behavior sharply contrasts with past bull markets where whales actively sold assets during price highs and often drove market corrections.
Whales Defy Historical Profit-Taking Patterns
In previous bull cycles, Bitcoin whales who held between 100 and 1,000 BTC typically took profits when the market was high. Their selling behavior during these times contributed to sharp price drops as large amounts of Bitcoin were sold off. However, recent data reveals that despite Bitcoin's price spikes, whales have largely refrained from selling.
https://twitter.com/ki_young_ju/status/1842268130263073137
This change from historical trends is clear in the BTC: Realized Profit Ratio by Balance Cohort chart. The chart covers data from 2015 to 2024 and shows that the realized profit ratio of whales is much lower than in earlier cycles. This suggests that large holders are either waiting for further price increases or taking a long-term investment approach.
Accumulation Instead of Selling
The lack of profit-taking by whales raises questions about their strategy. Historically, these investors sold during market highs, which led to increased selling pressure and price drops. Yet this cycle shows a different approach, as many whales are holding onto their Bitcoin despite recent highs.
This behavior might indicate that whales believe the current bull run is not over yet. Data suggests they may be expecting further price increases. Alternatively, they might be cautious and waiting for clearer signals from the market before deciding to sell.
Market Implications and Future Direction
The shift in whale behavior has important market implications. Their choice to hold rather than sell could reduce the risk of sharp price corrections because large sell-offs have historically led to downturns. This reduced selling pressure could also provide Bitcoin price stability in the short term.
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