The tides are changing in the Bitcoin sea. A recent analysis from CryptoQuant, a blockchain analytics firm, paints a picture of an evolving investor landscape, with a new breed of “whales” – high-volume cryptocurrency holders – entering the fray and established players holding their own.
This influx of new capital is significant. Ki Young Ju, CEO of CryptoQuant, reports that these “new whales,” likely originating from traditional finance and entering via Bitcoin ETFs, have amassed a staggering $111 billion worth of Bitcoin. This exceeds the holdings of established “long-term whales,” whose collective reserve stands at $67 billion.
The initial investment of new whales in #Bitcoin is almost double the cumulative total of old whales. pic.twitter.com/SU5Aiw1nJB
– Ki Young Ju (@ki_young_ju) April 23, 2024
Crypto newcomers with deep pockets
If the financial power of these new whales is undeniable, the results of their profits paint a completely different picture. Unlike their seasoned counterparts who post over 200% unrealized profits, these newcomers experience a much more modest gain of 1.5%. This suggests that they may have entered the crypto market at a higher price, potentially during the recent push towards the $67,000 resistance level.
Miners make hay
Despite the contrasting fortunes of new whales and long-term whales, overall market sentiment appears optimistic. CryptoQuant’s analysis extends beyond whales, revealing healthy profits for miners as well.
Junior mining companies lead the pack with an impressive 130% unrealized profits, while their larger counterparts aren’t doing too badly either, sitting at a comfortable 81%. This strong mining profitability indicates a healthy network, with miners diligently securing the Bitcoin blockchain.
Bitcoin is currently trading at $66.753. Chart: TradingView
Bullish outlook
Ju believes this combination of data indicates an extended uptrend. The fact that New Whales have not taken significant profits suggests that they are in it for the long haul, potentially anticipating further price increases. This corresponds to the constant interest in Bitcoin ETFwith Fidelity’s IBIT leading the pack in terms of new investments last week.
The $67,000 question
However, the path forward is not entirely smooth. Bitcoin is currently struggling to decisively break through the Resistance level of $67,000. This could be a point of contention in the near future, with bulls pushing for a breakout and bears looking for a potential correction.
The cryptocurrency market is experiencing fascinating dynamics. New deep-pocketed investors are coming in, established whales are holding on, and miners are profiting handsomely. Although the short-term price action of Bitcoin remains to be observed, the general market sentiment seems to favor the continuation of the uptrend.
Featured image from Pexels, chart from TradingView
