Bitcoin Whales Taking Unrealized Profits Could Affect the Market: Report
Bitcoin whales are recording gains in unrealized profits amid slowing momentum. a new CryptoQuant The analysis shows an increase in the accumulated earnings of Bitcoin whales.
According to the report, large numbers are seen in long-term whales due to the price increase in the last 12 months. Bitcoin price broke out of the 2022 bear market below $20,000 before making major gains. The inflows were driven by increased institutional investor inflow into spot Bitcoin ETF applications.Whales’ Unrealized Profits
“It highlights a significant increase in unrealized profits for long-term whales, suggesting that they are hedging their positions and could influence the market if they start taking profits.” – With @Woo_Minkyu
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— CryptoQuant.com (@cryptoquant_com) April 25, 2024
Bitcoin Whales Inspired by Spot ETF and Halving
The approval by the United States Securities and Exchange Commission (SEC) pushed the price of BTC above $72,000 as inflows surged. Although the price faced a correction at $56,661 following the Bitcoin halving, whales still held profits.
These long-term investors appear to be bullish as they hold on more to unrealized gains. Many analysts point to a potential bull run To retain unrealized gains. Bitcoin whales see the halving event as a bullish phase for the asset, following historic highs following past events.
Although analysts think that this halving will not cause as much rise as in previous years, the bulls still exist to achieve higher profits. The fact that Bitcoin miners are preserving reserves without selling directly is another factor behind why whales are optimistic about unrealized gains. Streams to the point Bitcoin ETF Another bullish trend for whales.
Selling Could Bring Down Markets
According to the report, asset selling by Bitcoin whales to make profits could send the market into the red zone. Large sell-offs can lead to liquidations in the market, reducing the price of crypto assets.
This year, long-term holders and miner flows have shaped the direction of the market in parallel with major developments such as ETF approvals such as the halving.
“The circle on the right highlights a significant increase in unrealized profits for long-term whales; “This shows that they are holding their positions and if they start making profits they can influence the market.”
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