BTC whales don’t have enough profits to dump on the market – Ki Yang Ju
An analysis of Bitcoin's (BTC) unrealized profit ratio comparing new and old whales suggests that large Bitcoin holders have yet to make enough profit to dump their huge holdings into the markets, CryptoQuant founder Ki Yang Ju explained in an Oct. 2 post.
According to the analyst, the new Bitcoin wells – those who have held the asset for five months or less – would only realize a 1% return on their investment if they were to sell at the current market price.
Older whales are doing better with a gain of around 1.27 on September 30, compared to 0.01 for new whales. However, Ju said these older whales – those that have been in their positions for more than five months – “didn't see particularly high returns” in this current cycle.
Unproven Profit Ratio New vs Old Bitcoin Wells. Source: CryptoQuant
Bitcoin whales are unlikely to dump their holdings on the market unless liquidity from retail investors pours in, Ju concluded — driving up prices and giving large holders an exit.
Related: Bitcoin metrics reset and point to ‘major activity' in Q4 – analysts
Middle East tension has caused the price of Bitcoin to fall
Following recent tensions in the Middle East between Iran and Israel, a US-based bitcoin exchange-traded fund recorded an outflow of nearly $243 million on Oct. 1.
These outflows reversed inflows for eight consecutive days and marked the most significant decline in a month.
Uncertainty over geopolitical tensions and the threat of a wider, protracted conflict have led some investors to predict a price floor for Bitcoin of $54,000 or below, as pressure mounts for investors to exit risk-related assets due to macroeconomic inflation.
Source: TradingView
Bitcoin will take time to reach its previous all-time high
Veteran analyst Willie Woo expressed a long-term bullish outlook for Bitcoin; However, Woo also stated that it will take some time for Bitcoin to reach the $74,000 level.
The analyst predicts a fair October, with prices trading sideways until November or December 2024.
Magazine: China to Intensify $1M Bitcoin Bull Run by 2028: Bitcoin Man, X Hall of Flame
